News | March 14, 2000

Report from Pittcon 2000: Used Laboratory Equipment - Who Buys It? Who Sells It?

Report from Pittcon 2000: Used Laboratory Equipment - Who Buys It? Who Sells It?
Many researchers and engineers are skeptical about used laboratory equipment, especially purchasing it online or through auctions. But if the Pittcon exhibition teaches you anything, it's that analytical instrumentation has become a commodity. Not quite like computer hardware, but very close. When instruments become commodities, it means customers know what they want, they can specify what they're looking for according to a list of desired features or components, and are not afraid to purchase it without kicking the tires. Forget how the color matches the laboratory décor. Forget where it's made or refurbished. Forget the price (almost).

Purveyors of refurbished instruments are among the busiest exhibitors at big trade shows like Pittcon. At one time, refurbished equipment was purchased mainly by smaller colleges and research laboratories in developing nations. No longer. With the cost of exotic analytical instruments approaching an average price tag of $100,000, it can take 2–3 months to finalize a purchase of a new gizmo. Who can wait that long in today's pharmaceutical marketplace? Acquiring a $50,000 instrument with a one-year warrantee is a lot easier, and in some cases it's as simple as pointing and clicking.

What to Look For
It's possible to purchase used equipment safely and confidently if you buy smart. The key is finding a dealer who provides both technical and support services. Make sure your dealer offers a comfortable warrantee and can service the equipment for a reasonable price if it breaks down. Top resellers/refurbishers sell equipment they own, vs. on consignment or "as-is" through auctions. Ownership implies that dealers take their reputation seriously, value repeat sales, and actually put an instrument through its paces before turning it over to you. Be very wary of dealers who sell equipment "as is." You might pick up a gem, but then again you may get a dog.

Refurbishers who own the instruments they sell you also are careful about how and where they acquire their products. You can be sure they will not invest money and technical resources acquiring and upgrading ratty, abused gas chromatographs or infrared spectrometers that drift into the ultraviolet, no matter how much money they can make on a resale. Their money and reputations are simply too valuable.

Resellers at Pittcon
Used instrument sellers form a tight-knit group of small, independent companies that compete fiercely with one another but also, paradoxically, cooperate, because they know their real competition is not each other but the original equipment manufacturers.

Tracy Gath and Everette Sizemore of GenTech (Pittcon booth 6225)

At Pittcon 2000, DrugDiscovery Online met up with GenTech Scientific, a relatively large (20-person) firm that stands apart by offering a full year's warrantee on most of their GC and MS products. "Purchasers of used equipment have the same right to reliability as those who buy new," said GenTech marketing VP Everette Sizemore. "Even when we can't offer a full year's warrantee we offer customers a 30-day money-back guarantee."

GenTech sells older refurbished laboratory instruments—including GCs and mass spectrometers—for about 50% of the original list price. Newer refurbs go for about 70% of list.

Scott Behrman, President of Pegasus Scientific (Pittcon booth 5854)

At Pegasus Scientific, our next stop in the nine-mile maze of aisles at Pittcon, company president Scott Behrman stressed the importance of a firm one-year warrantee on parts and labor. "We stand behind our equipment, whether it's a hotplate stirrer or an x-ray diffractometer," Behrman stated. Pegasus employs four technical and three support staff. It purchases its equipment at government auctions and private sales.

L. Sid Kane of International Equipment Trading (Pittcon booth 6321)

International Equipment Trading's (IET) claim to fame is a large inventory and showroom located near O'Hare Airport outside of Chicago. "Our claim to fame is we can provide waranteed instruments literally overnight," says sales manager L. Sid Kane. "People fly in to see our inventory. When they buy we send a technician to install the equipment." Like its competitors, IET uses a lot of independent technicians—mostly former employees of OEM equipment manufacturers.

IET prefers to sell instruments, but it will also lease or rent analytical equipment. As for auctions, according to Kane, "We rely on them mostly for equipment we can't sell through our normal channels."

Sandra J. Crowell of Mid-America Analytical (Pittcon booth 6818)

Mid-America Analytical believes service is what makes customers come back. "We're small enough that there's always someone to answer the phone to help customers through problems," stated regional sales manager Sandra Crowell. "We sometimes even help people who haven't purchased their machines from us."

Mid-America employs fewer than 20 people, including a network of what Crowell referred to as "satellite engineers"—individuals across the United States with extensive experience in one particular instrument line. Mid-America specializes in higher-end liquid chromatographs, ICP, AA, GC, and MS instruments.

Joe Aten of Analytical Instrument Recycle standing next to an HP Liquid Chromatograph (Pittcon booth 6948)

Joe Aten, a salesman with Analytical Instrument Recycle Inc. (AIR), believes his firm's strong inventory sets it apart. "Our competition is really solid, but not all of them can boast as many instruments in stock, tested and ready to be shipped as we can."

Analytical Instrument purchases most of its equipment through direct laboratory purchases, so, unlike its competitors interviewed for this article, AIR also sells such necessities as laboratory hoods and other hardware.

For More Information

Everette Sizemore, GenTech Scientific Inc., 5868 Rte. 98, Arcade, NY 14009. Tel: 716-492-1068. Fax: 716-492-0383.

Scott Behrman, Pegasus Scientific, 15779 Columbia Pike, Number 760, Burtonsville, MD 20866. Tel: 301-421-4399. Fax: 301-421-1189.

L. Sid Kane, International Equipment Trading, Ltd. 960 Woodlands Parkway, Verno Hills, IL 60061. Tel: 847-913-0777. Fax: 847-913-0785.

Sandra Crowell, Mid-America Analytical, PO Box 20607, Kansas City, MO 64195. Tel: 816-464-5000. Fax: 816-464-5324.

Joe Aten, Analytical Instrument Recycle, Inc., 4630 Indiana St., Golden, CO 80403. Tel: 303-215-0468. Fax: 303-216-0575.

By Angelo DePalma