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GSI 75th Anniversary - March 2024

Interview with Fred Fritz MBA, President, Songbird Medical Inc.

Fred Fritz, MBA

October 11, 2000
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AO/Beck: Hi Fred, thanks for spending time with us again! It's been almost 6 months to the day since we last met for an interview. You guys have been pretty busy since then.

Fritz: Hi Doug, it has been a very busy and terrific 6 months at Songbird.

AO/Beck: Tell me what's happened since we last spoke.

Fritz: Well, I'm happy to tell you we've launched 15 lead markets, covering some 11 percent of the nation. We have fit thousands of people with the Songbird Disposable Hearing Aid and the response has been great.

AO/Beck: Which cities are you currently in?

Fritz: Portland, Sacramento, Oklahoma City, Tulsa, Champaign, Milwaukee, Madison, Little Rock, Nashville, Cleveland, Pittsburgh, Greenville, Roanoke, Tampa and Atlanta.

AO/Beck:
OK, don't leave us in suspense any longer, what are the early results looking like?

Fritz: The early response has been very favorable. We are getting excellent assessments regarding sound quality. We have one of the best sounding hearing aids on the market. Comfort in men is excellent, comfort among women is good. The current tip size may be too large for some female ears and so we are about to introduce a smaller sized soft tip. As you know Doug, the tips are permanently mounted to our disposable hearing aids. Therefore, to better fit smaller ear canals, we're about to introduce a smaller size. So, in essence, we'll soon offer 'medium' and 'small' tip sizes. I anticipate the smaller tips will be available this November.

AO/Beck: Fred, are you indicating that the original product was indeed too large for the majority of ear canals? Or did it fit the majority?

Fritz: Our original tip size does definitely fit the majority, but not quite as large a population as we had hoped for. Additionally, because these units fit deeply in the ear canal, we have learned that the more experienced the audiologist is with Songbird, the more patients they can fit successfully. There is definitely a learning curve when dispensing this product. As the clinician gains experience, their successes increase, too. In our trials, we were able to successfully fit some 90 percent of adults. The original product fit about 95 percent of men, and probably some 80 percent of women. Our new smaller tip will help us get back closer to those numbers in actual clinic usage.

AO/Beck:
Fred, I know you have various circuits available for mild and moderate hearing losses, using different slopes and different gains. How many different circuits did you wind up with in the product?

Fritz: We have seven preset acoustical formats. The seven circuits appear to really meet the needs of just about all the patients with mild and moderate hearing losses. We offer four different gain parameters in the flat response and we have three gains in the sloping response. Again, due to our deep fitting soft tip, we are able to deliver an incredible amount of high frequency gain, with virtually no feedback. We have even fit people with precipitous losses and they too, have been successful.

AO/Beck: When the audiologist buys the Songbird package, do they get an assortment of the seven circuits? And, how many units must they purchase?

Fritz: Yes they do. We tailor the mix toward the most often fit formats, but give enough of each so you can fit the maximum amount of patients with less re-ordering. The most popular starter kit contains 72 Songbird units plus the Format Selector and promotional materials. The bigger demand is for the lower gain units, so you get more of those in the standard opening package.

AO/Beck: If these disposables are indeed 'fixed', that is non-programmable, then what does the Format Selector do?

Fritz: It serves as a master hearing aid in some respects. That is, it allows the patient to try the various circuits without the practitioner needing to open and try an actual Songbird unit. Then, once the patient and the practitioner have decided upon the best parameters based on the sample circuits available in the Format Selector, the correct unit is chosen for that patient. The Format Selector is a quick, easy and very effective way for patients to try Songbird before they buy. It works so well because the patient is fit both physically and acoustically with the Format Selector.

AO/Beck: How big is the Format Selector? And, what can you tell me about it?

Fritz: It's a hand-held device about half the size of a laptop computer. The cables attached to the Selector contain a demo unit that is an actual Songbird Disposable Hearing Aid. Once this demo unit is appropriately placed in the ear, the different circuits can be accessed by pressing a button on the Format Selector. As you know, the different sizes, which will soon be available may sound somewhat different despite using the same circuits, based on the residual volume of the ear canal. Of course, residual volume is a factor with all hearing aid fittings. For a given hearing loss, if the residual ear canal volume is small, we need less gain, if it's large, we'll need more gain.

AO/Beck: Have you done real ear and sound field verifications to assure us that the demo unit in the Format Selector is actually highly representative of the actual disposable hearing aid once it is placed in the ear?

Fritz: Yes we have and it's been shown to be very reliable. The Format Selector is extremely similar to the final product. Our tolerances are tighter than ANSI standards and the dispensed units and the Format Selector demonstrations are nearly identical in acoustic parameters and outcomes.

AO/Beck: Now that you've got a few thousand people wearing the Songbird, what has the battery life been? I know the original projection was 40 days.

Fritz: For most people using the product in the 12 hours per day range, the typical battery life has been between 43 and 46 days use.

AO/Beck: Do you recommend that the units be stored in a dehumidifier box when they're not being used by the patient?

Fritz: No, that's not necessary. All we instruct patients to do is keep the sound port open and keep the units clean. They also need to turn the units off when not in use. As you know, the removal cord is the on-off switch. They push it in to turn it on and pull it out to turn it off. So the Songbird is designed to essentially turn itself off as you take it out, which obviously helps preserve battery life.

AO/Beck: The big question for the 89 percent of us who do not yet have access is... When is the national release date?

Fritz: We will begin to release it nationally by this Fall and the release will be mostly completed by November and December. So, we'll be nationwide by the end of the year. However, we want to organize the release so that our supply will keep pace with the demand. That is, we don't want to release the product in an area until we have enough units to meet the demand. We are very concerned about meeting the replenishment needs of the professionals dispensing Songbird, and we want to make sure we have enough units in stock to never have a 'back-order' situation. We feel confident our professional partners would agree with that approach.

AO/Beck: Can you tell me how many offices across the USA have already signed up to dispense the product?

Fritz: We have around 2,000 locations signed up at this time and we plan to have some 3,000 to 4,000 locations.

AO/Beck: Fred, what will the national ad campaign look like?

Fritz: We have a number of different commercials running in our lead markets, and they're all oriented towards Baby Boomers. The commercials can be described as a lighthearted look at the results of not hearing well in the day-to-day busy, stressful life style that Boomers experience. In the first commercial, a trial lawyer is shown in a courtroom situation. Because he didn't hear the witness's last statement, he requests that the judge have it read back. The judge looks at him scornfully and says 'AGAIN?' Then, the voiceover talks about how millions of people have a mild-to-moderate hearing loss, and now the Songbird, a Disposable Hearing Aid, is available as a potential solution. We also have a commercial which is composed of testimonials from people speaking about how Songbird met their needs. Both commercials have gotten terrific response thus far.

AO/Beck: Have you done any recent needs assessments to verify what the target patients are looking for?

Fritz: Our mission statement is 'Bringing Better Hearing to the World.' That means by teaming with the Hearing Profession we can help bring better hearing to literally millions of Americans who otherwise might choose to never get help. We think that's a mission that all hearing professionals should be willing to tackle with us. Why haven't these people tried a hearing aid yet? I think we all know the answers to 'Why not?' Your audience gets those answers every day. But, to reach them it's so important to really understand what they want. There are four clearly identified needs. They want high quality hearing, excellent value, professional care and hassle-free hearing. So we developed the Songbird to address all four of those needs. It's a product which is professionally dispensed, deep fitting, has wide dynamic range compression, and multiple preset acoustical formats. Yet it costs less than a dollar a day, is easy to buy and lasts 40 days with virtually no repairs and very little cleaning required. So we think we've hit the target and opened up an enormous new patient base, which until now has been unavailable to the hearing healthcare professional.

AO/Beck: Fred, I think Songbird certainly has attributes and features which are attractive. I must agree that you have certainly given us all something to think about and hopefully the Songbird will indeed start getting those Boomers in the door. However, the primary concern I get email and phone calls about has to do with Songbird's commitment to the audiologists and other hearing aid dispensers. Specifically, many folks are wondering if you will open up in the giant discount stores and the national pharmacy chains and start selling the product off the shelf, or perhaps have professionals available in those venues to sit in a booth, do an over-the-counter hearing screening and sell Songbird exclusively. The concern can be boiled down to distribution patterns and the primary question is, if we embrace the Songbird, will we soon find ourselves competing with the factory?

Fritz: Songbird is committed to the professional dispenser. As I said a moment ago, that was one of the four identified needs. The patient wants our product to be professionally dispensed. We need the professional to examine the ear, to determine the correct circuit, to provide training and counseling, and to be available as needed for follow-up and guidance. We certainly do need the enthusiastic support of the hearing professional. Additionally, we know that the economic model for the professional is built around a long-term relationship with Songbird. If the professional cannot depend on the replenishment revenues, they are not going to support us. So again, our success depends on the professional's success. Therefore, we have no plans to open up our own shops in Walmart, Cosco or any other locations. Further, we will always launch our new products and new technology through the core group of 3,000 - 4,000 practices that decide to partner with Songbird to help us launch our first Disposable Hearing Aid.

AO/Beck: Somewhere in that last statement it sounded like the professionals will have and will get first crack at the new products, but that does seem to imply that an alternative dispensing route is or may be in the works?

Fritz: That is simply not the case. We are keenly and passionately involved only with professional offices and want to make sure they are the only avenue through which the product is obtained. Our core philosophy is that we must help the patient and the professional to be successful. Only then can Songbird truly be successful. What I should have said was that even if we someday expand to more hearing professionals than the original 3,000 - 4,000, that core group will always be the ones that get new products first. We think that's playing fair with them.

AO/Beck: I think there is lots of excitement and enthusiasm for the product out there, but there is also a fear that after the professionals help introduce the product and promote it, that in a year or two we will be competing with the factory for sales and patients.

Fritz: If we were to compete with the professionals, we would be cutting our own throats and we have no plans to do that. We need the professionals to assure our success and our continued growth. Our own success is intimately tied to the success of the hearing professional. We will not compete with them.

AO/Beck: OK, well I think we've covered that point! Tell me more about the replenishment protocol.

Fritz: Sure. The replenishment protocol has two options. They are voluntary and are decided on by the professional. The first option is the traditional one whereby the patient comes back to the office every 80 days or so to obtain their new supply of Songbird. The second option is an automatic replenishment system whereby the units are shipped directly to the patient every 80 days or so. Using the second option, the consumer automatically receives the hearing aids in a hassle-free way. UPS delivers the replacements directly to the patient on behalf of their professional. The professional continues to bill the patient - probably via credit card, and we bill the professional. Since this system is controlled by the professional, we think it will really increase patient control and enhance follow-up.

AO/Beck: Fred, suppose that I have a patient on the automatic replenishment system and they receive a hearing aid that doesn't work. What happens next?

Fritz: It's really very simple, Doug. The patient should return it to the professional for exchange. We'll credit the professional's account when they send the product back to us.

AO/Beck: Fred, what can you tell me about the situation in Florida. I heard from a few folks down there who thought Songbird was indeed trying to do an end run around the professionals?

Fritz: In brief, in 46 states, hearing professionals are permitted by law to ship replenishment hearing aids and repairs directly to their patients. In Florida, hearing professionals are not allowed to do so. They cannot ship repairs or replenishment units.
So, as we were preparing to launch our product in Florida, we planned to visit with both Licensure Boards. We hoped that they would view our replenishment system positively since it was based solely on patients first being fit by a professional and was really only an option.

At the first board meeting we attended, the system was viewed quite positively. However, that Board told us the only way to make a change to state regulations was through the legislature. Since the legislature was in its annual month-long session at that time, they encouraged us to act quickly - so we did. However, before we attended the other Licensure Board meeting we got word from FLAA that they thought we were moving too quickly. At that point, we stopped all efforts to change the regulations.

In retrospect, we were a bit naïve. But I want everyone to know that we felt we were acting with the support of the profession. We hope the profession understands the situation and realizes that we really do want to work closely in partnership with you.

AO/Beck: Fred, one issue we addressed six months ago is still unresolved for me. That relates to how will the audiologist dispensing Songbird be able to recoup their expenses related to appropriate fitting, rehab and counseling issues, and the many hours spent working with the patient?

Fritz: Our research indicates that the majority of hours spent working with the patient are actually spent on fit issues. That is, it takes many hours to get the fit right. With the Songbird product, we believe the fitting time will be dramatically reduced and so the total time invested will be less than the traditional custom fit devices. We believe the total time from diagnostics to fitting and counseling will be about 60 to 90 minutes, as opposed to the traditional 4 to 5 hours spent per fitting. What we've seen, so far, is that most professionals dispensing Songbird charge an exam or fitting fee of around $100 along with the initial dispense. That should help cover the costs of testing and training during the first visit. However, Doug, the key to economics with Songbird is its long-term profit annuity. That profit annuity will build to very large numbers over time. And it can smooth out a practice's cash flow. Even in traditionally slow months, your patients will still be reordering Songbird. I would encourage your readers to meet with a Songbird representative and let them do a long-term business analysis based on each individual practice situation. We think they'll be quite pleased.

AO/Beck: Fred, for audiologists who want to learn more about the product, what is your website address?

Fritz: We are available on the internet at Songbirdhearing.com. Our website has both a consumers and a professional section. The consumer site includes our distribution network (i.e. Where can I buy it?) and the professional site has more technical information.

AO/Beck: Fred, I want to thank you for taking the time to discuss these issues with me. I think the product is exciting and offers new opportunities for the patients and the audiologists and I'll look forward to speaking you again.

Fritz: Doug, thanks to you and Audiology Online for allowing us to address these issues and to get our side of the story out, too.
Sennheiser Forefront - March 2024


Fred Fritz, MBA

President, Songbird Medical Inc.



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