Factors driving high costs of assistive products
Given the heavy reliance on out-of-pocket expenditure in LMICs, the high cost of assistive products remains a major barrier
to access. Cumulatively, additional costs such as duties, shipping, logistics, distributor and retailer margins can push the
price as high as 500 per cent of the ex-factory cost. These costs are driven by the following factors:
- Import duties and taxes: Import duties and taxes are a substantial cost barrier, with duties ranging from 0 to as high as
108 per cent on certain assistive products, like spectacles in Bangladesh.
- Shipping and logistics: Expenses constitute 15 to 40 per cent of assistive product costs, depending on the shipping route
and order volume. Smaller, fragmented orders can drive up logistics costs by 30 to 40 per cent.
- Distributor and retail margins: High margins are common in regions with limited competition. For instance, in Uganda, spectacle
margins can reach 50 per cent, significantly increasing end-user costs.
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