Today, most laboratory professionals rely exclusively on service agreements purchased from the manufacturer to maintain and repair their laboratory instruments. Negotiating the most beneficial terms and conditions in any type of agreement for service is paramount to your satisfaction as a customer. In most cases, your expectation of what you have purchased are not consistent with what is written in the terms and conditions of the agreement.
Service Options
The best time to ask pertinent questions about the manufacturer’s service policies is BEFORE you sign the agreement. Once the service agreement is signed, your negotiating leverage is now gone. Asking the right questions and the willingness of the manufacturer to put their verbal promises in writing will help you determine if you want to do business with that company.
A service agreement is already a secured revenue stream for the manufacturer. The salesperson will explain that a service agreement will make it easier for your company to plan for annual maintenance and repair charges. Be cautious if the salesperson tells you that you should purchase the service agreement because only those customers with a service agreement receive “guaranteed response times” for repairs. If you have been told this, there are several points to consider before proceeding with this company:
- What type of company would delay service to a customer that made a significant investment in their expensive instrumentation?
- If the company valued your business and wanted you to purchase more of their instruments, would they really put you at the bottom of the list for service?
- If the company values you as a customer, would they force you to wait needlessly for a service call if you were not able to afford their expensive service agreement due to lack of funding or budget restraints?
Support
The manufacturer should stand behind their instruments and ensure that their customers receive all the benefits afforded to them. You should find out if you will have access to the technical support center if you choose to go with the time-and-materials option. Also, ask if training is included or if you will be charged.
Penalty
Does the service agreement include a penalty if the manufacturer’s service department fails to meet the response time guarantee? It is important to pay close attention to all of the terms defining a penalty clause. The agreement may note that the manufacturer shall not be penalized due to delays arising from “causes beyond the company’s reasonable control, and in most cases, an excessive delay in response time or any unsatisfactory repair does not give the customer the ability to terminate their agreement without penalty.
Choosing Wisely
Corporate restructuring, and mergers and acquisitions has forced many instrument manufacturers to reduce their workforces in order to improve profitability. When choosing a service organization, it is important to be sure that they will have adequate technical support in your area. Having a response time guarantee with a reduced workforce is null and voice.
Also, do they use independent service organization? What is the typical wait time for service calls in your area? Is phone support located in the US or outsourced to another company?
Doing your due diligence about the company’s service dept. is just as important as the research you did before buying the equipment.
If a quick response time is critical for you, it will be important to find out how long it is taking for onsite repair for current service agreement clients. Scientific Instrument Center, Inc. has been providing major companies, universities, and hospitals in Ohio with manufacturer trained preventative maintenance and scientific equipment repair for over 30 years. We pride ourselves in providing laboratory equipment repair and scientific equipment repair with quick response, competitive rates, and as always, we are dedicated to excellence.
To inquire about our services, you may contact us or give us a call at (614) 771-4700.
We are here to answer any questions you may have.
