sell used medical equipment for best price

Used medical equipment fair-market-value

Most people when trying to sell a used medical equipment do not know how much to quote. Medical equipment valuation is not as simple as used car valuation. Why so? Check the reason here. The price of used medical equipment depends on multiple factors but most importantly whether it is a much-in-demand model at all or not.

Demand for used medical equipment

Not all models are popular in the second hand medical equipment market. The models in demand are generally the one which was a market leader (commanded the highest market share). There are two reasons for this.

The market leading model has more equipment in circulation and hence availability of used spare parts is significantly better.
Availability of third-party service providers, skilled in repair of the model is also better.

Buyers of second hand medical equipment are usually price-sensitive and may not like to pay OEM charges for repairs. They depend on cheaper third-party services for the same.

Factors to consider in determining the asking – price of used medical equipment

Most sellers say – I have hardly used the machine and expect 80-85% of the original price paid by them. This is not reasonable. Let us look at the various components of the pricing and arrive at an understanding of how much to expect, even if it is absolutely new equipment.

Basic cost of production
Packing, insurance & transportation
Installation & training cost
Warranty
Licenses

Warranty costs could be 8-10% per year for most machines. In case of most radiology equipment like X-Ray, CT, OT Table, OT light etc., installation costs can be significant. Additionally dismantling and packing/ unpacking costs are applicable in case of used machines, which have to be borne by the buyer.

All these costs need to be reduced from the original price paid. In addition build-in the depreciation. One has to understand that the machine depreciates even when not used and deteriorates especially when not used for a while.

After straight away reducing 100% of the above warranty, packing, transportation, insurance and installation costs, as mentioned above, consider the depreciation of the machine based on its age. A minimum depreciation at 30% per annum is applicable for most medical equipment, whether used or not.

If the equipment is not so new, has been heavily used or has history of frequent failure for whatever reasons, there are many other things to consider. Check out the following blog to understand Approach to Medical Equipment Valuation

Final consideration

A used equipment buyer would like to inspect the equipment in working condition on their own before buying, hence geographic proximity of the potential buyer and seller is important.

Finally, a pre-owned equipment may not have the OEM support. It comes with unknown risks for a buyer and hence there needs to be a compensation for the additional risk they are taking.

If you are a seller you at least know the original cost of the machine. But, if you are a buyer and have no idea of the market cost of the machine, it can be quite a challenge.

Use PrimedeQ’s Used medical equipment value calculator below, to find out what you should pay.

Used Medical Equipment Market Value Calculator – First in India!

PrimedeQ is an eMarketplace for buying, selling, renting & servicing medical equipment. We offer Valuation Services for medical equipment. Contact us on +917019759765 or +918971223957 for any medical equipment or related spares & services.