Wednesday, November 4, 2015

Trade-Ins can represent big savings opportunities for hospitals

If you couldn’t join the latest installment of Miga’s monthly webinar series, “3 Great Ways to Avoid Costly Pitfalls in Equipment Trade-ins,” here’s a quick summary and how to catch up.”

Trade-ins Are A Huge…And Often Overlooked… Savings Opportunities

CEO Peter Robson shared Miga’s 10 years of experience on how important it is for hospitals looking to maximize the value recovery on traded equipment to have the most accurate pricing information available.

No OEM really wants your old equipment and any concessions they make on list price will surely be reflected in a trade valuation that is considerably below market value. Here are the 3 tips he shared for getting fair value:

1. Know the true market value of your equipment: It’s not easy. Traditional price benchmarking sources do a poor job on used equipment valuation. Talk to other hospitals; talk to colleagues and talk to other OEM’s, but arm yourself with data points. A Miga client recently was able to increase an infusion pump trade-in offer by 100% just by checking sources such as Miga’s EVMS. Net increase in value? $180,000.

2. Unbundle purchase price from trade value: Demand line-item pricing on purchase quotes and trade-in valuations, as OEM’s can mask hidden discounts (or lack thereof) by adding layers to deals. A Miga client recently netted a deal reduction of $236,000 by both selling planned trade-in equipment on the open market and negotiating extra discounts on the purchase price, all by unbundling the quote components on the front end.

3. Consider all your options first: Should you really trade in your equipment at all? Sometimes that’s the case. The value of keeping equipment for parts, internal redeployment or other purposes, can outweigh any value recovered through trade. A Miga client recently saved $133,000 by keeping a CT scanner for parts instead of trading it in to the OEM.  

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