Costco, known for its bulk groceries and household goods, has quietly become a major player in the hearing aid market.
Offering competitive prices, flexible return policies, and strong customer service, the retail giant now ranks as the second-largest hearing aid provider in the U.S., trailing only behind the Department of Veterans Affairs.
With hearing centers in almost 600 of its locations across the U.S. Costco has cultivated a loyal following having sold hearing aids since 1989.
The retailer’s success lies in its ability to keep prices low while maintaining a shopping experience free from any high pressure sales tactics.
Hearing aids at Costco start around $1,500 per pair—significantly cheaper than the usual $3,500 to $7,000 typically charged at clinics.
Customers also appreciate the generous 180-day return policy and free follow-up services such as cleanings, all without the pressure of commission-based sales.
The service also offers hearing-aid warranties of three years, follow-up appointments, device and checkups – not to mention hearing tests.
Many shoppers find themselves drawn to Costco after negative experiences elsewhere.
Cathy Ellis, 67, from Virginia, initially paid $6,000 for hearing aids from an audiologist but switched to Costco after struggling with the maintenance costs. She ultimately purchased a device that cost $3,000 and syncs with her iPhone.
‘I had my snake-oil radar up but there’s no stigma and no upselling,’ Ellis told the Wall Street Journal.
Stephen Martin from Arizona felt pressured to buy a $7,000 pair while at a hospital and so turned to Costco.
After being allowed to walk around the store wearing a pair he noticed he was hearing sounds that he wouldn’t normal pick up and decided to buy a pair for $1,500.
‘Every time I walk in that store to get something done to my hearing aids, I buy other stuff,’ Martin said to WSJ.com, approving of the company’s sales technique.
Both Ellis and Martin say they found quality products at a fraction of the price without having to experience and push sales people.
The reason Costco is able to sell and such cutdown prices is because of the sheer volume the company sells which now accounts for more than 16 percent of all hearing aid sales across the country.
Even audiology experts have acknowledged the challenge of competing with Costco’s pricing and service as the retailer offers an affordable solution to hearing loss.
‘There’s nothing that comes close to the pricing you get at Costco,’ says Abram Bailey, a doctor of audiology.
‘It’s an unfair position for anyone trying to practice audiology, but have I recommended to friends and family that they go to Costco for hearing aids? Yes, I have.’