The Perlstein Lab experimental design required the purchase of several pieces of large equipment–microscopes, a cell sorter, a cell imager and reader, and the Echo 550. This post will discuss what we’ve learned from our experiences with the process, which consumed 10-32 hours of company time…for each purchase!
Expect 5-10 phone calls, 30+ emails, and several in-person meetings. So we asked our Virtual Lab Manager from HappiLabs to help you understand the process of shopping for equipment costing >$5,000 and up to the $100,000’s.
Use this as a guide to make sure you’re buying the right equipment for a reasonable price.
Step 1 – Begin your search
- Identify suppliers who sell new units and get the sales reps contact information.
- Look at used equipment websites such as American Laboratory Trading, BioSurplus, and even eBay.
- Check this list for online auctions: HPG Auctions
Step 2 – Set a budget
Based on your initial research in step 1, you can begin to get an idea of the price. Also, talking with other labs in your building or collaborators can provide useful insight. If your network isn’t helpful, use the powerful Twitter search engine.
Step 3 – Contact companies for a quote
A sales rep will contact you to understand your needs and Q&A might go on for days or weeks with many email communications. Plan accordingly and start this process at least a month or two before you need your equipment. A quote may take 1-3 weeks depending on the availability of the sales rep and their company’s infrastructure.
ALWAYS obtain quotes from at least two suppliers, if possible (some technologies are only available through one supplier).
Step 4 – Review quotes
Analyze the costs and risks. Sales reps will throw extra features at you that you may or may not need. Questions to ask yourself:
- Are competing companies close to each other with price? If not, why?
- Do they offer the same solution?
- What line items in the quote do you NOT need? Eliminate accessories and unnecessary stuff. Some sales reps will try to convince you that you need something you probably don’t need.
Step 5 – Ask for a demo
Most companies will bring a demo unit to your lab so you can see it in action. Assess it functionality and at the same time, assess the personality and honesty of the sales rep and field technicians. This will tell you a lot about the company because at the end of the day, it’s not a product you’re buying, but a supplier you’re investing in. Do you want to invest in that supplier?
Step 6 – Time to negotiate
- Confirm the features you need. Ask specific questions about features/accessories you are not sure about.
- Pay attention to the service agreement. What’s the warranty and what kind of coverage are they offering if things go wrong? A service contract is not necessary if there is a warranty. As a startup, think about it this way…if the warranty covers the first year or two, you don’t need extra service beyond years 2+ b/c if you’re still alive at that point, you can afford to buy a service contract then or buy a new unit.
- Leverage competitors against each other, but don’t squeeze too hard or it will get uncomfortable for everybody.
- Make sure you are completely comfortable with the purchase.
Step 7 – Select a winner and be kind to the “loser”
Send an email to the company you want to buy from. Tell them, “Congratulations, you made a sale.” You just made several people a bunch of money, which may go to support their family or their membership to a golf club.
Be friendly to the “loser.” Email or call them, be honest, and tell them you’ve decided to go with their competitor. Most likely, they’ve also committed a bunch of time to you, so they deserve the respect of a kind letdown.
Step 8 – Confirm timeline for delivery, installation, and training
Just because you’ve committed or paid for the unit doesn’t mean it’ll arrive anytime soon. Confirm the schedule and plan accordingly.
That’s it. You can do this yourself, if it’s really important to you, or you can focus on your science (reading papers, planning experiments, etc.) and hire a HappiLabs Virtual Lab Manager to handle most of this process. If you can afford one, do it! If you can’t, enjoy the free advice. The question for you: What’s more valuable….your time to develop your innovative science or your cash flow?
