Negotiating Strategies or Excuses?

3 Minute Read | Decision Factors

“Asking price is too high. We buy same pumps for half the price.”

“Market is saturated with these modules. They are almost worthless.”

"System is old and worthless. Removal will be expensive."

 

Healthcare Providers and Supply Chain Professionals, do any of these sound familiar? 

How many of you heard these statements while selling medical devices after they were removed from use by your organization? 

 

Are these statements accurate, or is the buyer trying to corner you into lowering the price under pretense they know the market better? 

In some instances, yes, these statements are correct and your buyer is right.

 

However, that's not always the case. 

 

If your buyers are purchasing devices for inventory than it is unlikely you will receive fair market price.   These buyers have overhead expenses such as warehousing, transportation, refurbishing processes, etc. and there's never 100% guarantee that device will sell and their investment will be fully recovered. 

 

However, there are situations when devices sell at fair market prices or premium. This usually occurs when

• Buyer has an immediate need for device  
• Device is being purchased by an end-user

So how do you decide whether to sell the device, or keep it until the right buyer pops up on the radar?

 

Here 3 biggest factors that should influence your decision

1. Equipment type
2. Future use potential 
3. Timeline

Let's explore the Big 3 in more detail.

 

Device Type: 
There are many types of equipment - general, surgical, lab, diagnostic, the list goes on. 

Within this mix, there are individual unique devices such as O-Arms, Portable Heart-Lug Machines and Mobile Hyperthermia Treatment Systems to name a few. 

Provided such devices are in working condition and supported by their manufacturers, it is possible to sell them 25%-60% above fair market price.  

 

The keys to getting a good sale price are

• Correct Sales Strategy
• Global Market Use and Demand Knowledge
• Communications
• Targeting the Right Buyers
• Patience

Posting an Internet listing and sending few emails to vendors that fix medical equipment and soliciting an offer will unlikely yield any stellar results.

 

Future Use Potential:

Yes, your organization may have paid a lot of money when they purchased this device. Yes, it may be in pristine condition and well maintained, but offers you are receiving don't come close to what you feel the device is worth or asking prices you see on the Internet for same device so you decide to keep it.

 

It's a tough predicament but if you're not going to use this device, you should entertain a lower offer as it sits there, it will loose all remaining residual value and in the end, you will pay to have it removed and scrapped. 

 

Please don't assume you will get 40-50% of what you paid in 1995 especially if the device is no longer supported by the manufacturer. 

 

Also, keep in mind MD Buyline and asking prices on DOTmed do not reflect fair market price for end-of-use medical devices.  You will need to determine fair price by doing your own analysis, monitoring the market, following auctions and constantly communicating with multiple buyers.   

 

Timeline:

Occasionally, even with a good strategy, you will have no choice but to cave in to your timeline. Most unique devices eventually sell. It’s just a matter of time it takes to find the right buyer willing to pay the right price.

 

However, if space is an issue or an asbestos abatement project is underway, time may not be on your side. Therefore, timeline will impact duration of the selling cycle.

 

If you pull the plug on selling cycle because you don't have time to chase buyers, answer their questions or just want device out, then you should probably delegate or outsource this job. 

 

Premature sale of medical devices only limits revenue that can be generated from capital investments made by your organization.    

 

At the end of the day, everyone wants a good deal. Everyone negotiates. Everyone hustles.  Ultimately, it is up to you or your trusted partner who works on behalf of your organization to sell end-of-use medical device equitably and smart.

 

 

We are here to help you decide the best way to decommission medical devices your organization no longer uses. Even if you work with another service provider, have questions, looking for suggestions, ideas or resources, please contact us and we will be glad to be a resource. 

 

To learn more about benefits of a managed Medical Equipment Decommission Program, please visit www.ecomedhtm.com or send an email to med@ecomedhtm.com. 

Holidays, Goals and Lots of Noise

The Holidays are officially here. And despite the politically correct name, it is officially shopping time, party time, vacation time, family time, gift-giving time, bonus time, travel time, TV time, and of course, the Facebook posting time. 

 

It can also be an emotional time, spent reflecting, remembering, and reconsidering what you mediocrely did in the past that can be done better in the future. 

 

New plans and goals are made. Some of them are even kept and achieved. Most, unfortunately are not because plans and goals made in the heat and emotion of the moment are often not realistic.

 

So while the corporate world is buzzing with next year's action plans and online marketplace is screaming which gadgets you absolutely must buy, because apparently everything you own will be obsolete in less than 7 days, maybe, for just a moment, you can block their noise by 

• Hanging out with kids. They make you forget about adult hassles and welcome you into the world where being silly and awkward are rewarded with laughter, where stories are not judged and promises are kept.  
• Getting together with people closest to you.  And telling them how grateful you are to have them in your life. Trade memories, share ideas and raise a toast to new adventures. 
• Staying realistically positive. Everyone struggles, at home, at work, at the airport. Anywhere you look, it seems like a challenge, or an annoyance-of-sorts is lurking in the shadows. Pay a tribute to it with a glass of wine, or your spirit of choice, and move on to something that will make you laugh. 
• Making peace with at least one person. There's someone you'll see during the season that's not your favorite. Don’t succumb to negative impulses, maybe even say “hello” and see where it goes.   
• Being your own Santa. Make a list of gifts to buy for yourself! Something nice. Something you really want. Celebrate yourself, your past year and your next year. 

And as much as I want to keep work out of this post, I cannot. Many of you will be working. Hopefully the time and effort spent in the office will get you one step closer to achieving your professional goals in 2016.   

 

With all that, I wish you and your families good health, happiness, laughter and love. May you enjoy the time with the ones you love, the ones who love you, the ones who keep you safe and the ones who give you comfort.

 

Let this be a Very Merry Christmas and let the New Year bring new adventures, professional successes and personal victories into your life.