Hedlund said that business in 2008 was good - up about 30% from 2007.

Perhaps business was up because on February 13, 2008, President Bush signed into law the "Economic Stimulus Act of 2008" allowing for substantial equipment write-offs. For example, most dental equipment qualified for a five-year depreciation write-off, whereas furniture and fixture (such as waiting room area) could be written off over a seven-year period. And, the updated IRS Code Section 179 for 2008 allowed expensing the first $250,000 of qualified dental equipment purchases in 2008. This accelerated the depreciation deduction in year one, thereby doing away with traditional depreciation methods over a five or seven-year period. IRS Code Section 179 property applied to new or used equipment.


The bad news is the new tax law extended the provision through 2008 only, after which the expensing amount reverted back to $125,000 in 2009, adjusted for inflation.

Refurbished equipment will save money

Still Hedlund feels that clients who had considered investing in new equipment are now looking to buy used equipment as an affordable alternative. Hedlund is optimistic about 2009. "It seems like customers who've been holding off to see what the economy does, are deciding to move forward with equipment purchases and, to date, January has been a strong month for sales."

Refurbished equipment is the logical answer to the high cost of furnishing a dental office. A dentist can save approximately 50-60% by buying refurbished equipment and it can look and function as well as new equipment. For example, Hedlund recently sold an entire five-operatory office of refurbished equipment for just over $50,000. The same new equipment would cost more than $100,000. Another example is a panoramic X-ray which averages around $30,000 new, but a refurbished model can be purchased for under $10,000. Hedlund Dental Inc. generally warranties products for six months to a year and offers installation and delivery for complete packages.




Randy Adams, President of A.T.S. Dental equipment says the dental industry has changed over the years and transformed from single operatories to multiple operatories with large staffs. "Practices are similar to production environments where changes go relatively unnoticed by the dental staff or patients," says Adams. He believes, based on these changes, there is a need to improve the way service is performed and the scope it covers. Adam's background is in the automotive industry, and he's worked in the technical/engineering field for ten years refining their processes, making equipment more efficient, cutting costs and increasing revenue. "I've applied my experience to make dental offices more efficient by implementing preventative maintenance programs custom tailored to each practice," says Adams. Using Adam's service methods, many dental practices have seen a positive affect on the bottom line.

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