Break the Mold: Equipment & Service Without the Contract

MyDentalRep.com
Aug 25, 2017 · 6 min read

An efficient dental office is always looking for more effective ways to run their practice. Equipment purchasing and maintenance can be an area where an office can save upfront and ongoing costs. Below are a few guidelines that can help any dental practice save money and unbind them from potentially costly contracts.

Competition is Good

Getting the best price will require some work on the part of the dental office; this is a reality that is hard to avoid. But don’t be discouraged, strategic work at the beginning can alleviate a lot of extra work in the future. Contact multiple suppliers to obtain a quote — not a huge task, but time consuming. Make sure the quote clearly states the costs involved. If vendors ask if you are comparing, the answer is, most definitely, yes. Knowing they are competing can lead vendors to provide lower pricing.

Be sure to get an idea of what is unique about each company and what their strengths are. Here are a few questions you may consider asking:

• Why should I choose your company?

• How does your company differentiate itself from others?

• What makes your company unique?

• Is there a service charge each time you come out?

• Is the service charge separate from the repair bill or is it credited towards the repair?

• Is this the best pricing you can give me?

The idea is to get to know them a little, figure out what they stand for and determine if their goals align with yours in any way, shape or form. This may seem a little hokey, but a big part of business is determined by how well you get along with those you do business with. You won’t get to know everything about the company, but try and get an idea of what they are about. Keep notes about each company on the quotes they provide you; this makes it easier to remember your interaction with each separate group.

Avoid Bundles

It is a common practice for the large dental suppliers to bundle their equipment with a serviceplan and supplies. These bundles are often designed to be ambiguous. The claim is that the if the dental office will buy the equipment, the vendor will provide a discount on supplies. Sometimes the pitch is reversed: buy supplies through the vendor and they will discount your equipment and/or maintenance plan. Either way, the approach enables the big suppliers to inflate the costs across the board and make it difficult for the dental office to pinpoint where they are saving and where they are losing money. More importantly, a main reason for these bundles is to make it harder for you to leave them. It’s a mind game.

Avoid the trap of bundling equipment with supplies and/or maintenance. This will help avoid hidden costs up front and overpriced service calls and/or inflated supply costs in the future.

There may be instances where a dentist could save a little on supplies or on the equipment, but the dentist should run her/his own numbers first to see if tying supply purchasing and/or equipment maintenance to a long-term contract is worth it. This can be difficult to determine because the dentist does not know if s/he will need to utilize a warranty and/or service plan. But don’t fret too much, there are additional options available where you can get service and maintenance at a much lower cost. But before we leave this section, keep in mind that contracts are generally there to benefit the vendor, not the dentist.

Separating Out Maintenance & Warranty

Vendor pricing often includes built in service plans; the same goes for warranties. Be sure to ask the different vendors for a price difference. Here are some questions that may help:

• What is the price for the equipment, no warranties, no service plan?

• What is the cost of the service plan? What does it cover?

• What is the coverage of the warranty? What is the process for a warranty-covered repair? How is it different from a non-warranty repair? Are there additional costs (e.g. parts, labor, etc…) that can be charged even when I have the warranty?

• What is the coverage of the service plan? What is the process for a service plan repair? How is it different from a warranty repair? Are there additional costs (e.g. parts, labor, etc…) that can be charged even when I have the service plan?

Be sure to figure out what the warranty and/or service plan actually does. Too often, they are just an additional expense because any service or warranty call requires additional costs (e.g. service charge, parts, labor, etc.). Be sure to determine just how helpful either the warranty or service plan is. Sometimes they require extra work on your part. For example, if you want to utilize a warranty repair, it may require advance notice, extended lead times or a waiting list. This is important, because some manufacturers warranties have ridiculous lead times on service repairswith their service plans. Take this into account, as it usually means you’ll have to pay extra to get it fixed in a timely manner, regardless of warranty coverage. When this happens, you’ve lost money up front as the warranty is not helpful and you paid extra anyway; not to mention the time wasted trying to get it fixed.

Consider a Third-Party Repair Maintenance Group

Finding out the warranty and maintenance costs is key, as it may lead to considerable savings up front, and possibly in the future. There are many reputable third-party companies throughout the U.S. that will service equipment, no matter who you bought it from. Some do not charge a fee for a service call unless they can fix the issue. Others will be happy to troubleshoot multiple equipment problems on a single call. Some have same day service at no additional cost. Questions to ask a third-party maintenance/repair group are:

• Do you charge for service visits?

• Do you have same day service? If so, what are the parameters? Does it cost extra?

• Do you carry the standard repair parts or are the majority ordered after service visits?

• Do service charges go towards the overall bill or are they separate?

• Is there any standard dental equipment you do not service?

• What is your standard response time for a service call?

• What information is needed prior to coming to our office for a repair?

Rates for third party maintenance and repairs can vary, but the savings can be well worth the work of talking to them before making your purchase. Due to the lower rates, dismissing the additional maintenance contract and/or warranty may be a game changer once you’ve spoken with a third-party maintenance/repair group. Savings could be had up front during the purchase and in the future as you utilize the third-party service for less expensive repairs.

Conclusion

Use the quotes from each of the vendors and compare them against your notes. Be sure to include info gathered from the third-party maintenance/service group. Crunch the numbers and figure out from which vendor to purchase the equipment. Remember to calculate the potential savings to be had from not opting in on the warranties, additional warranties, maintenance/service plans. If it is significant, consider ditching them and just purchasing the equipment and nothing additional from the vendor. This method will reduce your up front cost, ongoing cost and deters any contractual obligations that, in the end, do not allow you do make decisions that are best for your dental practice. Any partnership that limits your ability to control the direction of your business is a hindrance to your success.

Being a dentist requires business acumen. Dentists are running a business and businesses require oversight of all costs. This article has been designed to help dentists recognize an often-overlooked area where they may be able to recoup some significant savings, while at the same time increasing proficiency and lowering long term costs. Be mindful of all expenses and avoid being pulled into long, unnecessary and costly contracts. Find companies to partner with, not work for.

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MyDentalRep.com

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Our mission is to reduce the stress, time and cost of dental supply ordering — we truly work for you. Find some of our thoughts on the supply industry here.

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