You know that the only way to win in capital equipment negotiations is to benchmark OEM quotes. But newsflash: simply comparing quotes will NOT get you to the lowest price. Miga has learned during our ten-plus years in the industry that failure to benchmark means you’re paying 12-16% more than what your competitors are.
Here are three other things to keep in mind the next time you benchmark for capital equipment negotiations:
- Don’t assume your initial quote represents the best available price – OEM sales reps are sharp. Do you really think they’d ever show their cards and provide their best price right up front? It never happens. Never accept their first offer; keep pushing.
- There is greater pricing leverage with warranty and service quotes – Rest assured, any OEM reduction in list price will be reflected in increased service contract/warranty costs. Most medical equipment purchases come with a one-year warranty, but did you know that some hospitals are being offered two-year warranties – and some aren’t offered any at all? In fact, one of our hospital clients recently saved $125,000 on an MRI purchase after comparing their quoted warranty with other hospitals and realizing they could get a second year added for free.
- Check for unadvertised special prices or limited time promotions – You might be surprised that sales professionals might keep company promotions or special prices hidden from quotes they send. When benchmarking, always be sure to see if other hospitals are receiving any of these promotional discounts. One hospital we know originally wasn’t offered an end-of-year promotion on a linear accelerator service contract. By bringing this up in the negotiation, they were able to save an additional $200,000!
Ultimately, bringing these negotiation tools to the table will help get you and your hospital the best and lowest prices on your medical equipment lifecycle costs.