Look Before You Leap Into That New Device Purchase

Unprecedented times have made women—and men—more conscious about their physical appearance than ever before, providing unique opportunities for aesthetic practitioners. However, the success of your practice or business doesn’t rely solely on hiring skilled and personable technicians. A clear understanding of your target patients, competitors, and trends will help you identify what devices you need—and whether to invest in new equipment, consider purchasing a refurbished device, or repair rather than replace the devices you already have.

Before thinking about specific devices, examine all aspects of your practice, for example:

• How many patients do you service at once?
• What is the purpose of each individual treatment room—eg, chemical peels, microdermabrasion, body contouring and cellulite treatments, hair removal, scar removal?
• Do you need to hire or train staff members to accommodate patients and services provided?
• How will you rotate patients through the treatment rooms? How much downtime is required?
• What services will be provided only by your practice and have minimal competition in your market?
• Which services provide the best profit margin(s)?

ASSESS YOUR NEEDS

Aesthetic devices have come a long way in treating a range of conditions and skin types. Whether addressing dermatologic disorders such as melasma or actinic keratosis or looking at profitable procedures like hair removal and body contouring, the aesthetic market is filled with devices that are suitable for addressing those issues. A device’s features are its main selling points but when it comes to deciding on whether to choose new or refurbished equipment, bear in mind that a device that is not working can slow up service and available appointments for patients, leading them to find an alternative aesthetics provider. So, you maintain your devices to get the most out of the lifetime of each device. You would buy new if your device was no longer repairable or if a new device has features that are not widely available on the market.

Although technology advances rapidly, some new devices still use the same components and technology as older devices. Systems constantly get redesigns, model changes, and software upgrades that only include changing their external “look.” This means that some older models may have the same clinical efficacy as a new system. When looking to upgrade your device, make sure the new device has the commensurate improvement in performance, efficacy, and technology to justify the price.

Until now, aesthetics practices have been highly dependent on exclusive arrangements with original equipment manufacturers (OEMs), with no alternatives for service quality or price. Unless you have built your business reputation on being the first to market with an innovative but as yet unproven technology, looking at a proven, dependable mode of revenue generation usually makes the most financial sense. By doing so, you also open up options for service of the device to third-party providers, which should save money in the long run.

HOW TO FIND A QUALITY REFURBISHED DEVICE

Depending on the device, the choice between a new device or one that’s been refurbished can make a difference of thousands of dollars. In some cases, OEMs may try to discourage those who are looking to purchase pre-owned by offering anecdotes on infrequent problems or accounts of issues that reportedly could go wrong with what they call “gray market” units. They may also try to charge very expensive recertification fees as a means of dissuading the purchase of a pre-owned device. However, working with a reliable refurbished equipment vendor offers an opportunity to acquire leading-edge technology at a much lower price point. A manufacturer-agnostic provider can help you elevate your practice with a good-as-new refurbished device that enables you to offer competitive services, improve patient care, and decrease unintended downtimes.

Look for a recommended partner who is constantly innovating to help clients’ businesses flourish. Most will know, based on their direct experience, what systems are efficacious (ie, a hair-removal laser that actually removes hair) along with those that are developed, engineered, and manufactured utilizing quality components and innovative technology. Knowing in advance which systems will address your market need and niche—and verifying that once they get fixed they will stay functional over the long term—can mean the success or failure of a business.

When purchasing a service warranty, it should not only support a device once problems occur but also include a preventative maintenance plan. Preventative maintenance services include changing filters, cleaning optics, flushing cooling systems, and inspecting other system components. These efforts help stay ahead of problems and can limit extensive damage and expensive repairs in the future.

Your business or practice profitability will depend on making the right decisions to meet your needs. Ask these questions of your propective partners, be they the OEM or a seller of pre-owned equipment. Where ambiguity exists, have it clarified in writing on the first page of the contract. That can potentially save you tens of thousands of dollars down the road.

BEFORE YOU BUY

Most pre-owned dealers offer “virtual” demonstrations to prove they actually possess the equipment for sale, show that it’s fully functional, and validate the device’s capabilities. Online reviews often exist but are sometimes skewed in one direction or another, depending on the situation and the public relations skill of the company offering the device. It’s best to seek out people with direct experience dealing with a certain provider or a specific technology to gather first-hand accounts. Ask for references and follow up on them to get your questions answered ahead of the purchase and not after the fact. Doing so will provide additional peace of mind that the company, people, and equipment you are interested in working with are anything but “virtual.”

RIGOROUSLY VET THE SELLER

Bear in mind that, legally, there’s no real definition of “refurbished.” It can mean whatever a vendor or seller wants it to mean. Sellers who don’t offer a return policy are best avoided, since you have no guarantee that you’ll actually get your money’s worth or have support in the event that the device malfunctions. One good litmus test of a seller’s integrity is the warranty and how they plan to stand behind their product. Short-term warranties are not long enough to identify failing parts. The system could have damaged parts that work in the short term but will degrade further over time. The ideal warranty on a new or refurbished device should be at least 1 year, preferably with an option to provide coverage for up to 5 years, which roughly correlates to the useful life on many aesthetic devices. A company offering long-term warranties demonstrates that it believes in the product and its condition.

If the seller isn’t exactly transparent about rates or refuses to offer flexible payment plans, that’s also a red flag. Before purchasing your device, lock in a fixed rate, as a variable rate may increase over the course of your ownership of the device given the trends the Fed is taking. Knowing the impact on your business cash flow and locking that in for years down the road will eliminate the possible surprise expenses that can lead to revenue-generation loss and downtime of the equipment.

SEEK OUT A PROVIDER WHO’S OPEN ABOUT REPAIR COSTS

When weighing the decision to repair vs replace an older device, get a cost estimate for any parts replacements and repairs. Be sure the vendor can and will help you compare and prioritize your needs and ensure that you know both the power and limitations of the device you have in mind. Ask for the average cost estimates for typical repairs, their availability of parts for replacements, and how long it will take to make a standard fix.

Consumer law in the US and British Commonwealth countries stipulates the repaired equipment components must be substituted and replaced with “like for like,” meaning the fit, form, and function must be identical to all terms and conditions for new parts and components. Two real-world examples to be aware of relate to the new and pre-owned markets specifically. OEMs typically have a much higher cost to service both inside and outside of their warranty because their field service technicians are not required to be proficient in circuit board-level diagnostic analysis. That means you may end up paying for a complete, brand-new board costing hundreds or thousands of dollars when it might be repaired with a far less expensive component. On the pre-owned side, most companies also do not possess that analytic capability and are forced to scavenge the market trying to find replacement parts, which may or may not conform to the OEM specifications.

UNCOVER HIDEEN COSTS FOR EARLY PAY-OFF

Buying a refurbished device or refurbishing an existing device can help you save money, but don’t go into it blind. Ask for the payout terms on your manufacturer or broker contract up front, so you’ll know your options. Specifically find out if pre-payment is permitted, so you won’t incur penalties or end up being liable for the sum of the full payment regardless. These so-called “evergreen” clauses in lease or finance contracts used to be the norm in the aesthetic industry. If you don’t scrutinize the terms and conditions of your agreement carefully, you could fall prey to a situation that could cost you business. Sales or service contract terms and conditions should be clear, concise, easy to understand, and written in plain language. If your contract stretches more than three or four pages, you better read it thoroughly—and push back if there is anything that could put your practice in jeopardy! Do not be afraid to demand specific inclusions in your sales and service agreements that favor you (and not your supplier partner). Knowing what your options are regarding the original purchase, the initial warranty period, the financial arrangements, and the options for long-term coverage ahead of time will save you endless headaches in the future. If you cannot get these important considerations answered to your satisfaction, keep looking.

Aesthetics providers deserve affordable, conscientious service providers that offer flexible financing plans, transparent payoff information, and partners who are focused on keeping their practice running smoothly long beyond the sale. They do exist, and if you do your homework, you will reap the benefits!