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40 Responses

  1. Penny
    Penny March 28, 2011 at 6:12 am | | Reply

    PMMOD indeed Wil. Sounds slimy and the more I read, the dirtier I feel. It just sounds wrong, no matter how legally ‘right’ he may try to be. I don’t like the logo which does make me think of the Red Cross or a true 501c3 charity. And is he truly a charity if he makes a profit for himself? It just reeks of greed and false statements about what he really does.
    Great post and great information.

    1. Davis
      Davis November 14, 2011 at 11:25 am | | Reply

      What’s the problem? Wil, have you at some point asked to see a pay stub of the CEO of JDRF or American Diabetes Association? Also, Blue Cross Blue Shield is a NON PROFIT also. I wonder what that CEO’s salary is?

    2. Yolanda
      Yolanda October 15, 2012 at 10:39 am | | Reply

      I am a a type 1 diabetic. I have been un-insured for the last 5 years. I am married and have 3 children. My husband and I both are not insured. Our kids are on the Health Kids Plan from President Obama so they do have insurance. Before researching on where to find test strips at affordable prices I was buying them on Craigslist and Walmart. When I found Jay and his organization I really felt I stumbled upon something special. I even tried to place ads on Craigslist promoting his organization! I always get flagged. For the last year I have been buying my test strips from Jay. Although they are not free they are still the best price I can find. I use Accu Check Aviva and Bayer Contour strips. They usually arrive within 3 days of order. I think it’s great he is able to make a living doing this. And Yes, I do feel he is helping himself AS WELL as helping us diabetics without insurance who are type 1 and must test often to avoid complications and to stay alive. I just wish, I could buy my Humalog and Levemir insulin {I do have a prescription for both} from Jay. These medications are very expensive with /with out insurance!

      Thank you Jay for the work you do!

      Yolanda

      1. Meg
        Meg April 30, 2013 at 11:28 am | | Reply

        Contact me, I have some supplies you can have. My son is a Type 1 and has some extra stuff.

  2. Kathleen Weaver
    Kathleen Weaver March 28, 2011 at 6:41 am | | Reply

    Not the first one I’ve run into — I left one group I was an active member of percisely because while it was officially non-profit, the person running it was making a living off the organization.

  3. Nick Lozar
    Nick Lozar March 28, 2011 at 7:20 am | | Reply

    I have to say that I admire his ingenuity, and I do think he is offering something for closer to nothing than any non-insured diabetic might be able to obtain. I have no issue with an individual with some drive using someone else’s wasted resources to make a living. that is the American way after all.

    I do concur with you, however, with calling the organization a Non-Profit. If the law allows this based on his business model, then he is just a saavy businessman, and maybe it is the laws that need to be investigated.

  4. Bernard Farrell
    Bernard Farrell March 28, 2011 at 7:35 am | | Reply

    Sounds like a useful business to me, but I do think he should be completely upfront about how it works. Soliciting charity dollars for this is just sleazy to me, drop the 501(c)(3) front, if he’s making money at it for just himself then why look for charity also.

    I’m uncomfortable enough that this is one diabetes-related site I won’t be adding to Diaboogle.com.

  5. tmana
    tmana March 28, 2011 at 10:06 am | | Reply

    People make money off 501(c)3′s all the time — many need a paid staff in order to run. That said, I would suspect the only reason Koch qualifies for 501(c)3 is that he’s posed his “expired test strip experiment” as, well, research, which qualifies as “education”. That this is likely a smokescreen for either not-dumping expired strips or getting some sort of test strips to people who need them for (effectively) half the posted price is another issue.

    What DSR really highlights is the issue with governments and large organizations whose intents are (or at least are purported to be) charitable not understanding what the people they will be serving really need, or their priorities. We have seen examples of this in the 70′s, when food-aid beef and sugar ended up in the elite markets of Haiti because the poor people for whom it was intended sold it in exchange for the staples they needed: beans and rice. We are told this is why people in third-world countries have to walk miles to receive their insulin shots in-clinic: their families would otherwise take the insulin and sell it on the black market to provide food to keep the entire family alive, rather than the one hapless individual.

    Bringing this back to home, many people who qualify for Medicaid/Medicare with little or no out-of-pocket payment have trouble gathering enough money to put food on the table. For people with Type 2 diabetes, this means there’s no real method of using diet to control blood glucose levels, in which case why should they test anyway? (Not to mention, how much usable information do you get with only one test a day, anyway?) Being able to exchange something they don’t need (insufficient numbers of test strips, or test strips whose info they can’t use) for something they do need (money to pay rent, electricity, food) is a reasonable exchange, and it is why intermediaries like Koch are able to make a living at it.

    That said, the continued autofill of strips paid for (with little or no complaint) by health insurance, Medicaid, and Medicare keeps the cost of those strips artificially high, causes the providers to want to pay for fewer strips for those who really do need them, and in effect keeps strips away from many of those who need them — insured or not.

  6. Doug
    Doug March 28, 2011 at 12:21 pm | | Reply

    These kinds of “businesses” make me nervous/mad. If its your business, say its your business. If its your only means of income admit it.

    This sounds very similar to the popular Insulin Pumpers Mailing list. Its a old technology Mailing list that purports to be “helping” 5000 people and solicits donations from its users constantly. IP also ships surplus supplies to people with needs, those supplies donated from IP members. It has “dozens of volunteers to help run it ” and a single proprietor. The dishonesty comes in suggesting that the list needs $40,000 a year to survive. While the entire mailing list could be run on one shared server somewhere for $20 a month. That leaves $35k for a decent salary for its proprietor… If your sole income is reselling test strips or “selling” an email list. Thats fine, just admit it – Be open, honest.

    Usually the reason people aren’t honest is because the truth is not as effective at generating $$ as the shadows and the stories.

  7. Cary
    Cary March 28, 2011 at 1:18 pm | | Reply

    @tmana Very true. Non-profit is quite a misnomer. Take a look at the form 990 for your favorite charities and you can see how much each executive makes – how much money they bring in and how much money they spend on their programs. Excellent charities keep track and tout their ratio of expenses to programs. JDRF, ADA, DHF, Livestrong, etc all pay themselves for their time.

    How this company/non-profit in particular goes about handling their affairs may be a different story. Sounds to me like he is simply making a market – using a classic bid/ask spread to make a few dollars. There are plenty of organizations that run non-profit arms. I’d hope this is a similar example. I could not find any listing for this on Guidestar (where I find form 990 for non-profit financial statements).

  8. Teri Lynn
    Teri Lynn March 28, 2011 at 5:16 pm | | Reply

    It’s so typical to isolate this within certain groups of industry and this particular charity seems no different. Crooks always prey on the weak.

    As your statement says “Maybe what appalls me is simply the fact that “sneaky” test strip sales is big enough business for some clever guy to be making a living at it.”

    Always be certain to read the fine print in all text from an organization you will find very similar profit generating techniques in all of them I am certain. Thanks again for writing such a greta post. I love this site

  9. Brad
    Brad March 28, 2011 at 5:23 pm | | Reply

    With obvious exceptions, DSR is successful because there are PWDs who sell test strips. How long before an insurance company that purchases 150 test strips per month for a PWD demands validation that 150 tests (minus controls, etc.) are actually performed per month? Meters could be programmed to register results for uploading at the pharmacy or in another manner. Validation might eliminate wholesale reselling of hundreds of strips.

  10. mcityrk
    mcityrk March 28, 2011 at 10:24 pm | | Reply

    Legal: Probably, Ethical: Marginal at best, Providing a useful service: Very likely assuming the strips are truly extra, work correctly, and are not being acquired for sale by insurance fraud. The real question of course is if the primary source of income for this organization is largely from the resale of strips or if it comes from cash donations made by donors who do not realize their monies are being insufficiently distributed to those in true need and are essentially flowing through to this organization’s bottom line.

  11. Jay Koch
    Jay Koch March 29, 2011 at 6:49 pm | | Reply

    Thanks, Wil, for taking the time to write about DSR.

    You have the facts mostly correct, but I hope that I can change your attitude about DSR. Please see my reply at:

    http://www.diabeticsupplyrescue.com/diabetic-supply-rescue/is-dsr-a-bait-and-switch/

    Thanks,

    Jay Koch
    jaykoch@DSRNM.com

  12. Myra Shoub
    Myra Shoub March 31, 2011 at 10:06 pm | | Reply

    As a person who receives my test strips from Medicare – I have to tell you it is not easy. I have to send in a log sheet of EVERY test I do. I only get as many as I can show I use every month. There are also NO AUTO REFILLS on Medicare for test strips. Even though I am signed up with a supply company every month I have to call them and request the strips. I can barely get enough when I do ask, much less extras – on Medicare. I only wish they magically appeared in my mailbox!

  13. Shelley
    Shelley April 1, 2011 at 5:23 am | | Reply

    Is there any organization out there that distributes used meters for FREE? I have several meters I’ve received that I no longer use, because my insurance company no longer pays for those test strips for that brand. I would hate to see them in a landfill, but don’t want to donate them to be resold, because I did not pay for them.

  14. Caroline
    Caroline April 1, 2011 at 8:57 am | | Reply

    Hi Shelley,

    Is there any organization out there that distributes used meters for FREE? Yes!

    I volunteer for ACT1 Diabetes, a support and advocacy group based in NYC. We have a non-prescription supply exchange program, in which donors mail us their unused meters, strips, etc. etc. and we give them to diabetics in need. Like DSR, our recipients are almost all uninsured, with out without jobs. It is all totally free. I have been involved with this program for several months now, and I 100% guarantee that if you donate your old meters (and strips! We ALWAYS need test strips!) that they will go into the hands of a grateful PWD at no cost.

    More information is here: http://www.act1diabetes.org/campaigns/supply-exchange-program/

  15. Shelley
    Shelley April 1, 2011 at 11:34 am | | Reply

    Caroline,
    Thanks for the quick response. I did not know about this organization and will contact them.

    Shelley

  16. Jay Koch
    Jay Koch April 2, 2011 at 6:56 am | | Reply

    Caroline,

    Can ACT1 use unexpired strips in which the boxes are open? If so, I can send them several boxes.

    jay

  17. Lorraine
    Lorraine April 7, 2011 at 12:15 pm | | Reply

    The cause is GREAT but; it’s just a shame that DSR feels he has to sell the test strips he buys. If DSR is truly a 501c then Jay Koch would solicit money donations to be able to buy the test strips from those willing to sell them, as well as ask for donations of test strips from people like me who don’t have to may too much for them and wouldn’t mind donating instead of wasting any that we can’t use. Even though he’s selling them cheaper than the average store he is still selling them and to me that defeats the purpose of helping. If helping those in need of supplies was the real passion behind DSR there would be no cost to those who need them. I agree it can come across as a “Bait and Switch”.

  18. EWP
    EWP April 15, 2011 at 2:42 pm | | Reply

    Wil, (and everyone else.) Yes, this is a scam.

    Follow along — He BUYS the strips CHEAP and RESELLS them as a middle man.

    Why should the diabetics who buy the strips from him have to pay THE MARK UP?

    If there was a legitimate charity organization doing this, they would match a SELLER with a BUYER and cut out THE MIDDLE MAN. The SELLER would still get the same amount that they would have gotten with this guy, but the BUYER would not have to get SCREWED!

    Is Jay serious? Do you know how much he gets as MARK UP per box? THE FDA SHOULD TAKE HIM AND OTHERS LIKE HIM OUT!

    They act like they are Robin Hood when they are actually ROBBING THE HOOD!

  19. Rachel
    Rachel April 22, 2011 at 11:57 pm | | Reply

    You people have GOT to be kidding. DSR is involved in charitable acts and situations on a daily basis. Hundreds of boxes of lancets, syringes, alcohol prep pads, pump supplies, meters, and test strips are donated gratis and redistributed to at-risk diabetics from street level, to childrens’ outreaches, to clinics, to hospice and overseas clinics including disaster relief. There are some test strips that are sold in order to be able to perform these acts of filling in for where the government lets off and puts people at risk. Are you aware that organizations like the ADA ask for donations to send diabetic children to camp then their families have to pay to send them? Are you aware that World Medical Relief receives donated test strips then charges people to be in their test strip programs? Are you aware that ADA and Juvenile Diabetes are not helping at risk diabetes to obtain supplies or actually find a cure for diabetes at all yet raise hundreds of thousands of dollars a year from donations? You all should be ashamed of yourselves. Your assessment of the professional image Jay has tried to create to lend credibility to the organization is out of kilter. Your paranoia and suspicion is way out of line…and some people in DSR are genuinely diabetic, not that it should be a parameter to qualify one to direct such an organization. Another aspect that you have neglected is that our economy is so bad that it is helpful to people to be able to sell them instead of allowing them to expire in a drawer or closet, much the same way that people can sell their wheelchairs, crutches, hospital beds, durable medical equipment at garage sales or Craigslist or anywhere else that have been paid for insurance. Many people had nothing for dinner or were having household items like their stove repossessed, if not for DSR, would have gone hungry and not had some basic commodities. You need to get a life and find some other genuine sleazy operations to pick apart like buzzards to direct your ersatz anger as you sit on your lofy perches not directly helping anyone at all.

  20. EWP
    EWP April 25, 2011 at 6:43 pm | | Reply

    Rachel,

    Fine. Prove it. Give me Jay’s e-bay seller name and we’ll see.

    Or don’t. I’ll just post the stats of the top 100 eBay sellers of test strips monthly income figures on this site and then people can make up their own minds. I’m sure Jay’s seller name will be in there somewhere.

    This is not some wholesome charity organization. This is a business, and a shady one at that. I’ve seen the figures before and thought about getting into the business myself, but I could not handle the moral downside.

    Have you ever suggested to the people you are buying from sell their strip at your mark up value? Of course not, that would put you out of business, and no one would be foolish enough to kill their cash cow.

    This is not just a local thing either. I’ve found the Craigslist ads in every corner of the States. It’s even beginning to spread to overseas locations. How many Craigslist ads does your “charity” run every week. Never mind I’ll gather that data too and put it in here. Maybe I should check the local paper’s classified ads for your “charity” too yes?

    I went to your website. Nice design. How much did that cost to set up? What’s the cost of keeping it running? How is it that you can pay people in CASH? You must have access to a large amount of it to be able to pay so many people on the spot. Business must be booming eh? I thought you were a “NON-PROFIT.” I don’t know about anyone else, but I would have to make a profit to be able to spend like that…

    Here, check this out: http://denver.cbslocal.com/2011/02/09/cbs4-investigates-black-market-diabetes-test-strips/

    Seems like there are some news outlets that are starting to catch on to some of you. Perhaps I should alert the local media in you area? Have them do a little investigative report on your “NON-PROFIT CHARITY?”

    Or maybe we should just get the FDA involved. They love this kind of stuff…

    There’s an old saying about “CHARITIES” like yours. If it looks like it, and smells like it, the you know what you have.

    1. Batu
      Batu April 18, 2012 at 3:57 pm | | Reply

      HAHA…………..CBS has about as much credibility as Jay seems to have!

  21. Matthew
    Matthew May 17, 2011 at 3:49 pm | | Reply

    I agree with Rachel. Most of you are very naive and clueless when it comes to 501c3 and non-profits. There is a difference you know. CHARITY IS A BUSINESS. I work for one and we make millions every day. that has nothing to do with the effort that is being made to offer discounted test strips for those in need. What other choice would those people have? I just hear alot of complaint and judgement coming from people who like to sit around instead of starting there own organization to do it better. Wait let me guess you all HAVE insurance, so you have no idea how meaningful it is to have a group like this offering discounted supplies. Regardless of his operating costs. Yes, charities spend millions just to operate.

    WAKE UP

  22. Carmen Essfreis
    Carmen Essfreis July 26, 2011 at 6:37 pm | | Reply

    I am a registered nurse and a registered physical therapist and I am very well versed in diabetes and diabetic care. I am also a very entrepreneurial minded person. I found it interesting as I read the responses posted to Wil’s article that some understood what Jay was doing and gave him a pass while others were outright hostile and indignant to what he was doing and would prefer to string him up to the nearest lamp post. Although there was a common sentiment that was woven through the responses of both groups and it wasn’t concerning what Jay was doing, but how he was doing it.

    If you look at his site and his $5.00 a month club where he sells test strips, his asking for cash and strip donations, etc, well at first glance at least, it appears that this charity might be a little less than charitable. The color schemes(Similar to the Red Cross) and some verbiage seem to go out of the way in trying to convince you that they are a charity. The word “Donations” crops up in several places and of course, what charity worth their salt would not go down that path, and Jay doesn’t miss a beat in that regard! They(jay) seem at every turn to remind you that they are a charity! I don’t like to be judgmental(But here goes!:) ), but my intuition tells me that Jay is simply, legally, I might add, buying and selling a medical commodity, diabetic test strips and supplies. Now, the flip side of the coin, he is doing it masquerading as a charity of some sorts even though he is a “Legal” charity in designation. Look around the Internet there are many people working this business from a profit standpoint and presenting themselves as such and why not, but Jay seems to be doing the exact same thing, but with charity wrapped around it! This evokes a felling that makes you say, “Hmmmmmmm”.

    Wil really tried to look at all sides of this issue, but one point that I disagree with in his article is when he says that Jay’s business model boarders on “Black Market” ? Markets and Models are not synonymous in my mind. Having said that, buying test strips (100% Legal) low and selling them high(100% Legal!) is the business model that every sales company on earth follows and I predict will forever and it isn’t even remotely “Black Market”. Now, let’s say Jay’s charity status and how he conducts that charity is another issue.

    Although, here is the reality check on the bigger picture of the diabetic supply market. Big Pharma makes these strips for pennies and yet, Walgreens sells them for hundreds of dollars in some cases! Insurance companies buy them for dollars and sell them for $30.00+ a box. Folks, who is getting rich here? Surely not the recyclers………at least not to the extent of the others. One poster also mentioned the FDA in the light of being some great government entity. In reality the FDA management posts are staffed by Big Pharma retirees, they are the great protector of Big Pharma………..so guess which way that ball will bounce 100% of the time?!

    Look, More power to anyone with the drive and determination to start a small business and make it work, with Jay included! As a health care professional I applaud those who can take a life saving medical tool and get it into the hands of those who can’t afford to buy it for retail prices. I come from Spain and you would not have the freedom to do this kind of business there, but here in the USA, yes! Your great country was built by those who start these small businesses, fill a need, and make money, and not by all of those government agencies and regulations that tend to make life harder all in the guise of protecting us all! With a very bad economy maybe your President Obama could learn a thing or two from Jay, or maybe he already has! :( …………………….:) !

  23. Joe McClain
    Joe McClain September 7, 2011 at 9:44 am | | Reply

    Wil you really need a reality check… What Jay is doing is a Win-Win for everyone involved! People with unused test strips make a little money, people that have little or no insurance (like my in laws) get strips at 50-80% off retail, Jay makes a few dollars and the government and taxpayers are not stuck paying for test strips for everyone in America that needs them.
    Wil if you are so pissed about this why don’t you use your time productively to create a site and set up a system where you collect test strips and donate them to people(like my inlaws) that have little or no insurance… until then get off your self-righteous high horse.

    1. Walda
      Walda July 18, 2012 at 8:07 pm | | Reply

      I couldn’t agree with you more Joe McClain, Jay has made it possible for my diabetic husband to check his blood twice a day, something he would not be able to do if he paid the regular price on test strips. More power to Jay and others like him!

  24. noshi
    noshi November 3, 2011 at 11:10 pm | | Reply

    …if you thought non-profit was a cheesy tax identity for them just feast your eyes on Kaiser Permanente. THE KING OF NON-PROFIT. *rolls eyes*
    KP is the BS of healthcare.

  25. Steve
    Steve January 10, 2012 at 9:39 am | | Reply

    All non-profits earn income. All non-profits pay their staff. All competent non-profit execs get paid well. Wake up from your strong desire to critically judge. The people he buys the strips from benefit and the people he sells to benefit. I can promise you he is not getting rich from this. Everyone is so quick to judge and judge so harshly. It’s a mob mentality and scary to be honest. He delivers a product that helps everyone involved.What about the blood donation program, they pay people for the blood or people donate it to them and then they sell the blood. What are they criminals too? No they get an exchange for the service they provide so they can keep providing the service. What about the billions of dollars raised for various disease research? This has been going on for decades and no real progress has been made in curing much of anything. In fact, most doctors favorite line is to tell everyone ” you will just have to live with it.” The only people that benefit from this “research” is the entities themselves and researchers, yet they for the most part never help anyone but their own bank accounts. And all of you are attacking one individual who is helping. Please seek out the right target. I would suggest first of all for you to take a good look into the mirror. There is where you will find the real source of your desire to attack another. You will find that it is your own misdeeds that fuels your venom. Take some responsibility for your own misdeeds and just maybe you will judge others less harshly and see what is really there.

  26. Kath Gilliam
    Kath Gilliam February 1, 2012 at 7:42 pm | | Reply

    I volunteer for Project Cure, which ships donated medical supplies and equipment to clinics and hospitals all over the world. We attempt to send diabetes kits (meter, lancets, strips, control fluid) with each shipment, but have been unable to fulfill our last few shipments because we do not have enough strips. Almost all of our shipments are comprised of “medical waste,” the equipment remaining after hospitals upgrade equipment or renovate and the supplies remaining upon a patient’s change in treatment or demise. It is literally making trash into treasure for people who may die without it.

    It is disheartening to think that life-saving materials are piling up in someone’s cupboards. I have been tasked with procuring glucose test strips, but I want to do so in the most conscientious and respectful manner. Do any of you have any suggestions for me?

  27. Denise
    Denise March 14, 2012 at 7:13 am | | Reply

    Seriously, if one of you want to find a way to get test strips and give them to me free, go for it! In the meantime, I’m glad Jay’s site is there, so I can get test strips for my diabetic cat (who obviously is uninsured) at a fraction of the pharmacy cost. If he’s making some money, I don’t care. I’ll continue to buy my strips from him.

    1. Walda
      Walda July 18, 2012 at 8:10 pm | | Reply

      As will I Denise!

  28. Julie & Mario
    Julie & Mario April 18, 2012 at 3:53 pm | | Reply

    Hello all,

    My husband and I came across this article by chance, but we have sold our strips to Jay in the past………..BUT NO MORE!

    When I first questioned Jay about his organization he couldn’t stop talking about that a non-profit was allowed to make money etc.,etc, etc.. I just asked a simple question and he went on and on. Almost like someone trying to convince you they didn’t rob the bank when you never asked about it.

    He gave us a song and dance about giving away strips etc, but all we can see is him selling them…………..for big bucks!

    We are NOT against the concept of recycling diabetic test strips and making a profit while providing a service……that is what makes the world go round! What we do object to is Jay’s hiding behind his non-profit to do it! Shame on you Jay!

    Just take a look at his EBay activity. His name on EBay is jaykoch505 and he has sold over 900 boxes of test strips for 4 to 5 times what he paid us per box! He also lays out the EBay sales page as if he is giving 100% of the sales to charity…………..FUNNY THING IS THAT THE CHARITY IS HIMSELF! :)

    Our world is full of deception and I think everyone is just tired of it! I am going to look into getting a copy of his charity’s tax return and post it up here and that should tell the final tale! I will bet that his organization most likely gives less than 2 cents of every dollar to charity, if that.

    Will had it right………….this truly is a “BAIT AND SWITCH”!

  29. Julie & Mario
    Julie & Mario May 9, 2012 at 3:57 pm | | Reply

    Update: This is Mario here, I checked with the NM Taxation and Revenue Department to try to obtain any records for Jay’s so called non-profit/charity and they said that all records are accessible by the public.

    Jay , I CHALLENGE YOU TO TO POST VERIFIABLE RECORDS SHOWING HOW MUCH MONEY YOU REALLY GIVE TO THOSE DIABETICS WHO NEED HELP OUT OF EVERY DOLLAR!

    I bet it is between 0 and 1 CENT! You should be ashamed of yourself!

  30. Walda
    Walda July 18, 2012 at 8:15 pm | | Reply

    I have just one question to everyone here who finds fault with what Jay is doing. Which one of you will supply my husband with his much-needed test strips for the same low price that Jay sells them for? Don’t trip over yourselves responding!

    1. Chad Langley
      Chad Langley August 31, 2012 at 3:36 am | | Reply

      Hi,

      I can’t speak for Jay, but we pay up to $25 per box to first attain the strips, process them (inspect, remove labels, package), and sell them for an average profit of $16 per 100-count box. We sell them on Amazon and eBay for now, because we don’t have the funds or customers to sell from our site. But we sell at the lowest rate and offer free shipping. Please, if anyone find this unreasonable, let me know. I don’t see how throwing away potentially life saving supplies is a bonus.

      Thanks,

      Chad

  31. Christopher Langley
    Christopher Langley August 14, 2012 at 1:17 am | | Reply

    I think to judge DSR too harshly is to assume you know Jay and what his motives are. As Walda points out, DSR is still doing a service at the end of the day, and doing that service costs time and money.

    That said, I don’t think “Charity” is the proper way to market DSR, mainly because it’s misleading, but in a broader sense, it stunts the growth of a beneficial and legal alternative market for test strips. My brother and I started a company very similar to DSR, except we’re not a charity and we don’t claim to be. We purchase test strips for up to $22.00 per box (you can confirm for yourself at http://www.teststripz.com/rates) and still try to sell them for 50-70% off retail prices, but if we try to compete with DSR directly we’ll go bankrupt. This rather discourages the growth of similar companies, and the healthy competition that would ultimately drive prices down across the market.

    Interesting discussion, thanks!

  32. Chad Langley
    Chad Langley August 31, 2012 at 3:30 am | | Reply

    The part I agree with is taking into consideration things more broadly. While we’re incorporated and break no laws, the media still thinks we’re the new mafia. I’m literally in the middle of a blog series to specifically point out the irrational and inaccurate claims that we operate in a black market.

    We’re 100% green. I’ve sold over 30,000 boxes that would have been tossed in the garbage. Where do the strips come from? Here are the top four
    4. Leftovers from Gestational Diabetes
    3. Relatives of Deceased with diabetes
    2. Change in brands = Unused old brand
    1. Insured diabetics eventually build up some unused boxes.

    If you don’t have diabetes, I think there’s something you need to do before you make any comment. Testing your glucose level isn’t like taking your temperature. It requires blood, meaning you can’t just sit in the cube, whip out your strips, the meter, and a lancet. You have puncture your skin, use the strip to absorb it, then get the reading.

    My Dad is supposed to test 7 times a day. And with Type 1 diabetes, the fun doesn’t stop there. 2 Insulin shots per day is just another example. In reality, my Dad tests about 5 times a day. He ties to test 7 times, but sometimes, life happens.

    He has 2 or 3 boxes every 3 months, and though he won;t except payment, another person would receive $60. We even send a box and pay for shipping. My only problem with DSR is it’s misleading.

    In fact, the comment from the article above, “Koch sells strips for as little as $9 per 50 count,” is misleading in my opinion. They sell donated, boxes that may be slightly damaged or have pieces of prescription labels. The 3 dollar delivery charge isn’t mentioned and policies like “To keep shipping prices down, we will usually take the meter out of its original packaging,” hurts our cause.

    26.9 million Americans have diabetes, and it’s arguably the most lethal degenerative diseases, period. Poorly managed diabetes leads to serious health complications. If we can save these strips from the trash… I’m proud to say I make money. It’s a brilliant model.

    The point is, this discussion all centers around a business that practices a completely different business model, objectives, and strategies. But we’re lumped into the same category. We’ve never considered being a charity because we’re not. A company’s website, logo, and other branding tools should convey transparency. Customers judge you in the first 7 seconds on your site.

    Regardless, at the end of the day, I’d rather see 100 boxes go to Mr. Koch than in the trash.

    1. EWP
      EWP October 23, 2012 at 5:30 am | | Reply

      Chad, and others,

      Thank you so much for making my points stronger. However you may have failed to realize that this was the case so I will explain.

      Your number 1 source of boxes is from INSURED diabetics. And you have been foolish enough to admit it? Can you say insurance fraud? These boxes are not being purchased by the insured person. There are laws regarding the resale of these items and you just implicated yourself. Nice work.

      You also claim to not be able to compete with DSR, yet you have sold over 30,000 boxes? at a $16.00 average profit? That is nearly half a million dollars sir. Are you paying taxes on that income? Is DSR as a “charity” paying taxes on their haul?

      Wake up and smell the coffee people. You who are using DSR and services like them are being dupped! You could sell your strips yourselves and keep the profits that these middle men are taking right out from under you. You are creating this monster by serving it.

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