The 7-Step Guide to Buying or Selling Used Dental Equipment
Setting up your dental practice (or replacing equipment in your current one) are factors many dentists and their employees will face. So how do you ensure you're getting the most bang for your buck? And when it comes to buying or selling pre-owned equipment, how can you ensure the smoothest sailing possible? This step-by-step plan will outline what you need to do as the buyer or seller of used dental equipment.
First of all, there are many benefits to purchasing pre-owned equipment:
- It saves you money.
- It allows for more purchases on your budget.
- You can set up, install, and customize according to your needs.
- You can help reduce waste.
- You can reinvest your money.
- You know that what you're working with is reliable and functions correctly.
Steps to Buying and Selling Pre-Owned Dental Equipment
1. Make a list of the equipment you need to buy, sell, or replace
List items by category and priority.
- Do you need the entire unit or just replacement parts?
- Stationary or portable?
- How much do you have in the budget for upgrades?
- Pinpoint your needs and expectations, as well as expectations from employees and customers.
2. Determine the value of the equipment
Value can be calculated simply using these methods:
- Cost Approach - This is determined through the price upon purchase. Figure out the cost of replacing the equipment and compare that to the prices on the pre-owned market.
- Income Approach - Calculate the amount of income the equipment generates.
According to DentistryIQ.com, companies will typically ask for 30% to 40% of the pre-owned market value of dental equipment.
Decide if the equipment should be sold as one unit or as spare parts for refurbishment if you are selling it. Or, as the buyer, decide if you should purchase and replace the whole unit or replace broken parts.
3. Determine the depreciation rate
Dental equipment depreciates over time by more than 10% of its value every six months. Some models have become obsolete as well. You should sell dental equipment sooner rather than later if you need an upgrade or replacement.
4. Get an appraisal
Ken Rubin at dentaleconomics.com recommends a detailed inspection done to assess the condition and remaining lifetime of the equipment. Dental equipment buyers can submit a request for repairs or negotiate a lower price with the seller.
There are a couple of ways to appraise.
Functional Life Valuation:
- Based on utility value for buyers or sellers
- Incorporates expected life cycle
- Original cost
- Current age
- Residual value at lifecycle's end
Item by Item Appraisal:
- Determines the value of each item and the amount it will sell for on the market
- Consider the product's longevity — how old is the equipment, and how much longer is it expected to last? Will you get a good return if you purchase?
Keep in mind that parts can be used for refurbishment, even if the equipment itself is no longer functional.
Selling dental equipment can help you:
- Manage expenses
- Clear out your office
- Create additional space if needed
- Turn your liability into an asset
5. Find out if the dental equipment is certified or refurbished
A certificate proves reliability. Have someone inspect the refurbished equipment. Ask about the process used for it as well.
6. Inquire about the product's warranty
In addition to checking for the warranty, try to choose sturdy and reliable equipment that is modern, comfortable, and easily repaired.
7. Ask about pay arrangements
Find out the method of payment as well as the estimated times of shipping and delivery. Check the qualifications of the shipping company if any of the equipment is fragile.
If you are the seller:
- Take photos of the equipment
- List make and model
- List the original price
- Write the year produced
- Describe the overall condition
Obtaining the equipment you need for your practice is important to you and your existing and future customers. These will shape the way people view your practice. Excellent customer retention is all about showing that you care and are willing to go the extra mile for them.
Feel free to contact us if you plan on selling dental equipment or need an appraisal. We will be more than happy to assist you with our fast and efficient service. Visit us here for a speedy quote or call us directly to reach a live acquisition specialist at 253.248.3974