This week, I received no fewer than 5 emails from vendors and salespeople asking about vendors that declared bankruptcy, vendors that have abandoned the veterinary market , or questions about rumors about vendors who are supposed to be on the verge of going out of business.
My standard response to all of these questions is that if you are worried, you dumped it during your purchase of your digital machine. The time to worry about your vendor blowing up is when you buy your machine and not in a fit of fear and frustration about how your machine is about to turn into a 75K doorstop because you can no longer find someone to service the machine.
My prediction is that there will be pain and suffering on the veterinary digital trail for vets who tried to save a few bucks and bought a machine from a vendor that was looking to get a last sale before exiting the market or even a well meaning vendor who just didn’t make it. Let's see if we can sort out why this is a problem and ways that you can plan ahead so we can keep my inbox empty and prevent you from sounding like the drummer from Dr. Teeth and the Electric Mayhem.
The source of the problem
Veterinarians buying a digital radiography system must remember that all digital radiography systems will break and those kooky ROI calculators very rarely take this into consideration. In fact, your machine does not even have to break for you to need service.
Think about it. There is a computer running your digital system. That computer WILL crash in the next 3-5 years. How are you going to get that digital software installed again? What happens if the new computer has Windows 7 and your vendor does not have a version for Windows 7? The answer is that if your vendor is out of business or they are not providing you with software upgrades - you are hosed. Preventing this situation by identifying service alternatives ahead of time is essential.
The main problem with digital radiography, in many cases, is that the only person you can call for help is the person who sold you the machine. Digital is not like traditional radiography. You can’t just call the local x-ray company to come save the day.
How deep is your safety net?
Before you buy that digital radiography machine, you need to have a contingency plan for the day when your vendor gets hit by a bus , or is otherwise unavailable. In many cases, digital radiography vendors have a safety net that you can use if your local vendor blows up.
For example, lets say you buy a Fuji CR machine from your local x-ray distributor. If that distributor blows up, you have access to Fuji service. According to Eddie Massetti of Fuji, Fuji will support existing customers and existing service contracts are transferrable.
So, does this mean that you should only buy from huge national distributors? The answer is probably not. Smaller companies may have some advantages over larger ones and smaller companies will often have a safety net. You just need to look for it.
For example, VETEL is now selling the Canon DR panel. In this situation, VETEL is responsible for the initial service and maintenance but a company called Virtual Imaging (who is owned by Canon) will be your safety net should there be a problem with Vetel.
Sometimes, however, the safety net can be extremely deep. There are cases of national distributors who use local installers to install x-ray machines made by one company with a digital detector made by another with software made by a 5th company. In this situation, you need to look in no fewer than 5 places to find out who you can call if there is a problem with the folks who sold you the machine. Whoa!
How much will your safety net cost?
While you are researching your safety net, you might also inquire how much that safety net will cost. In many cases the service agreements and promises made to you by your local distributor will not be honored by your safety net. In the few cases that I have had experience with, the safety net is considerably more expensive than the service provided to you by the person who sold you the machine.
And while I have you…
These are tough economic times. There will likely be some market consolidation in the digital arena. There are only a handful of publicly traded veterinary digital companies. These are the only companies where we have access to financial information that can indicate the health of the company.
If you hear of rumors about a company going out of business ESPECIALLY IF IT COMES FROM ANOTHER SALES PERSON it is probably just a rumor. I have heard rumors that each and every veterinary digital company is on the verge of going out of business at one time or another.
The bottom line: The time to freak out about your vendor going bankrupt or out of business is before you buy your machine. Be sure you have a back up plan if your vendor disappears. If you cannot sort out if there is a contingency plan…be afraid and look elsewhere.