Shorr Solutions: The Podcast Ep. 45 – How to Select Your Next Piece of Equipment

Transcription

 

00:00:07:20 – 00:00:56:02

Mara Shorr

Welcome to Shorr Solutions: The Podcast. I’m one of the hosts, Mara Shorr. I’m a partner in the medical practice management company. Yes, Shorr Solutions. Who’s the other host, you may ask? Easy answer. That would be my father, our founding partner, Jay Shorr. Together, we now have an amazing team and clients across the country. Listen as we chat, conversed, strategize and commiserate over life in the aesthetic medical industry.

It’s time for you to listen, learn, and be inspired as we help you kick start your practice. Because who doesn’t want a little more help? Welcome to Shorr Solutions: The Podcast.

00:00:56:04 – 00:02:14:17

Jay shorr

Greetings from wherever you are. My name is Jay Shorr, and today I’m going to speak on how to select your next piece of equipment. Selecting a piece of equipment is virtually a negotiation. So let’s start off with saying why is this year different than all other years? Well, what have you done differently in the past year or right now with respect to the economy?

And we can go on and on because 2020 is like no other year we have ever experienced, at least in my lifetime. And I’m a little ill decide, you know, I’m going to be 68 years old. So we’ve had the pandemic, we’ve had COVID, the economy has been down. The economy has come back up in the aesthetic cosmetic world.

We’re bound on the recovery. But what are you going to do next year, at least to maintain your additional financial health? What is your competition doing that you’re not doing? Well, you know, money grows. And as money grows where the focus goes and I don’t want to be corny and give you all of these kinds of different types of sayings that you hear all the time.

00:02:14:18 – 00:03:47:20

Jay shorr

But let’s get through a couple of things. What is your practice’s need for the right piece of equipment? Because every practice might be a little bit different. You may use a laser that treats vascular, you may have laser that can treat all kinds of rosacea, you may have psoriasis, you have all different types of equipment. If you’re in vaginal rejuvenation and you’re in male sexual health, CO2, radio frequency, and then you have to determine what is the going rate for the procedures, the price of your consumables and your disposals.

And does it make sense financially to buy that piece of equipment that you want other might otherwise not bother purchasing? Now, let’s not get caught up in some of the minutia where some of the people come and try and sell you the machines and they bring you these big fancy spreadsheets and they try and tell you, well, if you pay extra for the machine and you charge Y for a treatment and Z, you have X amount of a treatment, you’ll be able to pay off the machine in no time.

But that doesn’t always happen because you have to be able to drive the business. Is the equipment safe and efficacious and how much pain or discomfort is associated with that treatment? Because, you know, if you do the first treatment of a package and it is very uncomfortable, people may not want to come back, but that’s second, third, fourth, subsequent treatment.

00:03:47:22 – 00:05:14:01

Jay shorr

And which of your practitioners are able to treat these patients? Depending upon the state you’re in. For example, I’m in Florida and RNs and medical assistants and aestheticians are not allowed to operate lasers now an aesthetician that is an electrologist can operate a hair removal laser. A podiatrist can operate a hair removal hair removal laser if it’s from the knee down and other states, because in Florida, you have to be a PA, a nurse practitioner or a physician.

DO, MD and in other states. You don’t have to be. So be very, very careful who is allowed to do it in whatever state that you’re in. How long is this piece of equipment been on the market? Because if it’s brand new, it may not have gotten off the push in order to be marketed properly. People may not know about it, and then it’s going to be all up to you to be able to have to market that, whether it’s on social media, whether it’s invertising in your own office, whatever.

And who else is offering that piece of equipment in your area and around the country once again, that might come back to market. How much of and push does that? You know, there is the cranial lipolysis machine. I don’t want to get into names, but everyone knows what I’m talking about and they have an incredible amount of marketing behind it.

00:05:14:03 – 00:07:09:07

Jay shorr

So now it’s a matter of are you on the doctor locator? So now let’s talk about when is it the best time to purchase a new piece of equipment? Don’t be swayed by sales tactics because as professional consultants, we deal with the sales tactics all the time. Look, I have nothing against laser salesmen and equipment vendors. We love our vendors, but make sure that you’re driving the need to get this type of equipment.

And is it the best time of the year at the end of the quarter? Is it the end of the year? Are the laser or big box companies trying to make their quotas? And if so, that may be the best time to buy. Are there quarterly incentives? Are there additional warranties? Are there additional consumables that might come with the piece of equipment?

And more importantly, is it the right time for your business? It may be the right time for others, but it may not be the right time for you, because financially, economically, it may have been very, very hard pressed. You’re short on funds, your finances aren’t best. And for you to go in debt with another piece of equipment versus using the ones you have or sometimes regenerating the ones that are in your graveyard, you all know what I’m talking about.

The ones that you have to get all the dust off of that. It hasn’t generated any money. Don’t be scared and feel that. How much you paid for that piece of equipment? Get rid of those pieces of equipment in the graveyard. So where is the best place to purchase equipment? Is that when you come to a conference that you’re able to touch it and feel it, that you’re able to speak to other doctors that may have it and that have used it, you’re even able to handle the handpiece and see how comfortable it feels.

00:07:09:09 – 00:08:54:07

Jay shorr

Is it buying that from another physician who no longer has the need for that piece of equipment? Meaning, second hand, you buy equipment from a website, third party vendors that are selling used gently used equipment or even overseas. I think overseas purchasing is the last place to purchase a piece of equipment and maybe one of the first places to sell your old equipment and then let it go overseas.

Many times when you buy something from overseas, it may not be U.S. FDA approved. All right. And has not gone through the vibe. You know, 10K approval, things like that. Don’t get caught up in something like that. That is off label without disclosing it. All right. So how do you know when you’re getting the best deal? Howie Mandel had that show, Deal or No Deal?

I personally always want to feel that I’m getting the best deal when I purchase jewelry for my wife. I am the most uncomfortable because I really don’t know A: the quality. New to diamonds or a piece of jewelry that are identical but lasers, different types of lasers to do the same thing are different. So you’ll know. So how do I know I’m getting the best deal?

Is it price? is it quality? Do I utilize a show special? Don’t get caught up in show specials unless it’s time to get the quarterly quotas because there is a show during the normal times 8, 10, 12 times a year. And we participate in these shows all the time and we’re able to get you in show specials all the time.

00:08:54:09 – 00:10:18:23

Jay shorr

Usually the one that benefits the most to get the show special are the vendors. Unless you have such an amazing deal, but have something to compare it to. Read the invoice, read the fine print, read all the terms and conditions on negotiating a deal as we speak. And in the financing it says that it’s done on simple financing.

So if your bank might be giving you 4%, 4.5%, and then you’re able to get 3.75% or 3.9%, is it amortized interest or is it simple interest? Now understand the differences is one on simple interest. You take the amount of the piece of the equipment and then how many payments are you going to make of that?

And then how much is the interest? And it’s simple and the payment is the same identical every month. And the interest and the principle never varies from month to month to month. And many times there might be an early prepayment penalty if you pay it, because as you know, most of the times they’re front end loaded on the interest side, read the invoice to make sure that all the terms and conditions that you were told are actually being followed.

00:10:19:00 – 00:11:48:12

Jay shorr

Warranty return, shipping, finance, all these things. And if you’re not unsure if you’re unsure, ask a professional. Ask another doctor. As someone like us, as a consultant who negotiates deals all the time, ask. The worst thing that anybody can ever say to you, doctor, is no. And then you have options which we’re going to go through. If it isn’t a good deal for everyone, then it’s not a good idea at all.

If it’s a good deal for everyone except you, then it’s certainly not a good deal at all. So let’s talk about understanding the vendor’s needs and objectives. The vendors need. And the vendors objective is to sell a piece of equipment,naturally, and when they sell it with consumables versus the straight out piece of equipment and or a labor or a laser, they’re able to get added generated revenue all the time.

So if it comes with the consumables, see whether or not you can negotiate that piece of equipment with additional consumables, all they can say is no. Number two, don’t be afraid to ask questions and insist on answers about the new piece of equipment that you have. What is the worst thing to do other than you go into a negotiation?

00:11:48:14 – 00:13:00:00

Jay shorr

You leave the negotiation and you always walk out and you say, Oh, I forgot to ask them this. That’s okay. Come back again and ask it again. But don’t be afraid to ask the question and insist on an answer. And if they say to you, I don’t have the answer to that, it’s a very understandable question. Usually the questions are not unique.

However, if somebody asks you a question in business, it’s not necessarily your medical acumen. It is always okay to say, Let me check with my team and I will get back to you with the proper answer. Be sure to keep an eye out on the hidden details. Financing. We spoke about this. Any potential rebates that you may get?

It’s not just the equipment. It could be neural modulators, neurotoxins, dermal fillers, Volumizer. What if you need to return the product? Who pays for the shipping? Who pays for the shipping on the front end? First of all, is it ever would be wherever it’s coming from, if it has to go back, who pays for the crating? Who pays for the shipping?

00:13:00:02 – 00:14:23:09

Jay shorr

And then who pays for the shipping back? Is this all part of your warranty? And when does the warranty start? When it leaves the warehouse? Many times it’ll say that the warranty stop starts. O.B. Shipping means when it leaves the warehouse. But I would insist on the warranty starting when it gets to your facility and when the first in-service, doctrination, is done.

Because this way you know that it’s running and then you warranty will start now, is there cooperative advertising if you advertise them exclusively, Is there anything off of what you purchased or the consumables that you’ve purchased that allow you to get cooperative advertising means if I spend this, the vendor will give me that much back, like I said, the shipping and handling and more and look out for the hidden details.

Now you can say to me, Jay, but where are the hidden details? I always make a joke. I say the hidden details are in section three. Section A, subsection I, I I I in that two point font that you could barely read that starts out whereas and hereby and heretofore. Look, we all know sometimes you look at a contract and you have no idea.

00:14:23:09 – 00:15:45:22

Jay shorr

It’s like reading Greek or reading Shakespeare all over again. It’s in the olden days, the way it’s spoken speak to me like I’m a kindergartner. So now prepare and compare the details between the new piece of equipment and if there are other options and share them with a vendor. I call this a balance sheet. When I’m doing financials, you have an asset, you have a liability.

That’s what option A and option B really is. My option A is I want to buy the equipment. Option B is I can’t afford the piece of equipment. Option A is going to make me a lot of money. Option B, I don’t have the patient base. Option A, It has a multi-platform and a plethora of different procedures that I can do. Option B, I don’t do all of those procedures. Option A It’s great financing rates. Option B Well, I was very profitable this year. I’d like to pay it off and take a Section 179 where I can depreciate it all this year. So prepare and compare and share those options with the vendor. I am almost positive that you are not going to be alone.

00:15:45:24 – 00:17:06:10

Jay shorr

Now, facts versus opinion. If it’s your opinion versus somebody else’s opinion, you’re never going to win any negotiation. If the your opinion against their facts, you’re also never going to win. If that’s your facts against their facts, you may stand a chance. But if it’s your facts against anyone’s opinion. facts matter. And that is your strongest point. Now, look, your opinion is the one that matters, really.

But in a business negotiation, facts really matter, because as long as you have the pen, as long as you have the money or the ability to get money, you’re sitting in the driver’s seat. All right. You know, don’t get caught up with if you’re negotiating with somebody. I’ll check with my boss. Understand the levels of authority and limits of the people you’re speaking with.

And don’t waste your time with the runaround if you’re dealing with somebody that doesn’t have the ultimate authority. I call that political impotence. If you don’t have the, you know, the negotiation power in speaking with somebody that can make that final decision, then let me speak to the other person first. Give me the terms and conditions. Give me the facts and then I’ll deal with them.

00:17:06:12 – 00:18:32:07

Jay shorr

I don’t want to go with the runaround. I have to check with my boss that was famous in the auto dealer days that you get ten people that are going to check with you, insist on putting everything in writing, avoid the I said, he said, she said in poker, the only time that an oral contract is binding is when in a game.

When you say I call, I raise, I fold. Otherwise, an oral contract may not necessarily be binding because that’s not what I said. What I said is not what you heard. The only time you really ever go back to a contract, ladies are when you know that is when something goes wrong. And then you have to go back to it to see whether or not what you told me is what I thought, what I heard.

And then we need to go back to that. So get that done and get that done right upfront. There’s nothing more important to know exactly what you’re looking for and when you’re not getting exactly what you’re looking for, don’t ever and I mean, don’t ever be afraid to walk away from the deal. There are more things to buy than there are purchasers out there.

00:18:32:09 – 00:19:10:12

Jay shorr

I promise you, when you walk away, the people that are doing the selling will call you back. In this type of an economy because they want to get the sale. Ladies and gentlemen, that is how you select your next piece of equipment. That is how you negotiate in every strong sense of the word. It has been my pleasure to spend the last 20 minutes with you.

Good luck. God bless. And please stay safe.

00:19:10:14 – 00:22:06:20

Mara Shorr

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So that wraps up today’s episode of Shorr Solutions: The Podcast. If we mentioned any quote, links in our show notes, be sure to check them out for the easiest way to discover your best solutions you can find them.

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