We’ve all heard the maxim: If it ain’t broke, don’t fix it. But what happens when a piece of equipment that you require for your livelihood breaks down? Such an event can be catastrophic, especially in a pharmaceutical laboratory. For example, what if a piece of laboratory equipment that’s necessary for screening new drug compounds undergoes a mechanical breakdown in the middle of a screening run? These devices cost tens of thousands of dollars, and their repair can be very expensive. Also, what if you need to get the repair done quickly to get the equipment up and running again, but the repairman cannot make an on-site repair for three weeks? The answer: Purchase an equipment maintenance contract from the manufacturer. However, before you pay for such a contract (simultaneously with your equipment purchase), consider these points.
Should I buy a basic or advanced maintenance contract?
First, most manufacturers offer two or three variations on a maintenance contract. There’s usually a basic option, which may include one or more maintenance or repair consultations by phone, some form of consultation remotely via the Internet and at least one on-site visit by a technician for either repair or preventive maintenance.
More advanced versions of a maintenance contract offer multiple consultations and/or on-site visits by a technician, with the most advanced contracts covering travel costs for repair or maintenance visits as well as parts and labor. It’s not surprising that the more advanced contracts, which have more features, lead to greater cost savings for the purchaser. It may cost 30% to 50% less to repair laboratory equipment covered by a high-end maintenance contract vs. the “no contract” option.
Should I buy a full-service contract?
The cost of repairing or replacing the individual parts on a piece of laboratory equipment is sometimes greater than the cost of replacing the entire piece of equipment. In these cases, users should simply operate the equipment until it fails rather than buying any form of maintenance contract. This Run-to-Fail (RTF) approach is most common with low-cost laboratory equipment that has a short life span.
The other approach, known as Preventive Maintenance (PM) only, is suited to equipment that is also low cost but costlier than RTF equipment. The PM-only approach requires users to purchase a preventive maintenance contract that covers PM only; the contract does not cover parts and labor for any repair. As with RTF equipment, PM equipment is more expensive to repair than to replace, so the PM-only contract is a more cost-effective option.
The selection of a full-service contract should be based solely on the fact that the equipment covered under the contract is more expensive to replace than to repair. A full-service maintenance contract includes both repair and maintenance, so it’s appropriate for equipment that’s critical to the operation of the laboratory. Another business reason for purchasing the full-service contract is that the built-in cost savings are based on the equipment being too expensive to replace.
Determining which contract to purchase depends on many business factors, such as the cost of the equipment, the age of the equipment, the importance of a particular piece of equipment to the lab’s revenue generation and the cost savings associated with the contract.
Summary
The decision to insure a critical piece of laboratory equipment by purchasing a maintenance contract is crucial to operating a successful laboratory. Although there are many business reasons that justify the need for such a contract, equipment buyers need to carefully consider their lab’s budgets when deciding. Maintaining laboratory equipment is one more ball to juggle in the pursuit of running an efficient, cost-effective laboratory.