Medical and surgical centers can acquire equipment direct from the manufacturer, distributor, from pre-owned equipment dealers, or by fee per use contracts through leasing companies. Pre-owned/refurbished equipment sales and repair have a client base of hospitals, private medical centers, as well as distributors who are able to supply to hospitals through GPOs. More dealers nationwide are tapping into the veterinary market. For example, about 10% of Guier's customers are vet facilities.

International sales are strong

U.S. pre-owned/refurbished dealers have found a thriving foreign market. South America is one hot area. Mr. Cesar Martin, Owner of ProEndoscopy in Sunrise, FL, says he has many doctors visiting from South America: "they come here and they're able to see the facilities, [and] I give an explanation of the scopes." Dawoodjee also has customers in South America. European markets are also buying large quantities of pre-owned equipment. Guier has steady sales in Poland. Cacuci has business in Germany and Brazil. Mr. Dan Murphy, President of MetroMedical Industries Inc. in North Branford, CT has found internet outlets such as DOTmed.com have increased exposure of his business 60-70% and attracted customers from Great Britain, Dubai, Bulgaria, and South America. Mr. Edward Soto, Sales Representative for Sterile Med/Scope Exchange of Greensboro, NC says his company sells to places as diverse as Portugal, Italy, United Arab Emirates, France, Venezuela, Ecuador, and Argentina.

Pre-owned equipment is attractive for foreign markets due to the reduction in price-a necessity for medical facilities which do not have the budget of hospitals and private medical centers in the U.S.. Soto says, "The biggest factor for foreign companies and end users is that they are looking for equipment that is less expensive than what the major manufacturers are offering...refurbishing is a pretty good alternative for them." Pre-owned equipment saves up to 50%, sometimes more, over OEM prices. In addition, due to the current devalued dollar, foreign purchasing power is quite strong, and has led to a "dramatic increase" in business, says Soto.

ISOs are filling an important service gap

Another advantage for foreign customers contracting for repair services in the U.S. is the trend of OEMS to downsize or close repair and manufacture facilities in some countries and centralize the facilities in other locations. The previous locations, left without close access to repair, have found that shipping a part to the U.S. for repair is more advantageous both in cost and in turnaround time. Turnaround time is vitally important to a foreign medical facility to keep from having to cancel procedures. OEMS can sometimes have a turnaround time of two-three weeks. For domestic repair services it's just a matter of days.

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