The disruption to the global supply chain that started during the pandemic continues to create uncertainty for hospitals. Many suppliers have suspended production and even eliminated certain products. Rising costs and inflationary pressures are leading them to price increases across the board. As a result, suppliers have become less flexible on price. There is one proven strategy that can help overcome supplier resistance and help you get you the best deal every time.
Create (legitimate) competition.
When negotiating a purchase or service contract for equipment, don’t overlook competition as the most powerful lever that can move suppliers in negotiations. Legitimate means a product or supplier that your doctors might actually consider as an alternative to their first choice and giving suppliers a reason to believe they could risk losing a sale. Without competitive pressure, suppliers can hold the line on price, leaving you very little leverage to use to your advantage. And never let one supplier know they’ve won the business until you are confident you’ve got the best possible deal, as once they do, getting additional concessions is harder.
But sometimes there aren’t competitive options for specialty medical and lab equipment. Suppliers are well-trained to scoff at “inferior” alternatives from competitors and often assume you’ll buy from them regardless of price. What can you do? You can still create competition, but in this case with a used version of the same product.
Of course doctors prefer brand new equipment. But in the absence of a viable competitive product, a pre-owned version of the equipment your doctors prefer is the next best way to introduce competitive pressure. This way you still have two suppliers and reps competing for your business, and you can leverage both to get the best value and the equipment your doctors want.
When you create competition, you will increase your win rate and find it easier to get the price, and savings, your hospital needs.
Miga Solutions provides the most accurate and actionable pricing information, enabling hospitals to lower their medical equipment total cost of ownership (TCO) by 12-16%. To learn more about how your hospital can save, contact us.