Negotiating tips on equipment purchases for your practice.

• Become familiar with the piece of equipment and all the other costs associated with this purchase. 
  • Remember, cost of ownership includes not just the purchase price but also service agreements and consumables/disposals. 
  • Look at different manufacturers and models that are available that perform the same services. 
  • If price is the main factor regarding the acquisition, you should research refurbished units with similar service agreements.
  • Ask colleagues what they paid for the same or similar equipment.
  • Check GPO prices to see if the item is on contract.   

• Get more than one quote from other vendors to compare all pricing involved. 
  • Competition often results in better pricing when vendors know other companies are trying to earn your business.  Let them know what the other vendor(s) are offering you.  They might be able to offer you savings on the agreement or consumables that offset the higher price on the equipment.

• Do not just negotiate on the price of equipment, consider these factors too.
  • Installation – try to reduce these fees as much as possible
  • Training – most new equipment will involve some kind of training for the staff. 
  • Trade in value – If you have a piece of equipment to trade in on the new purchase, you can use this against the cost of the new machine.

• Timing your purchase can result in better pricing.  Vendors have quotas and often are more flexible during these periods (end of the month, end of the quarter, and end of the fiscal year).
• Know the return of investment (ROI) before you make the purchase.  Figuring out the breakeven point will help to decide if you are making a good purchase.  If you know the cost of the equipment, plus your expected reimbursement per procedure and the monthly volume.  You should be able to figure out your breakeven point
• Finally, compare buying the equipment versus leasing it.  You will need to decide if the tax benefits and higher upfront costs from purchasing the equipment outweigh the lower upfront cost and upgrades available on the leased equipment.

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