Jan 03

Q & A with Global Medical Imaging

Tell us how Global Medical Imaging was founded?
I have had different ideas on how I wanted to run an ultrasound sales and service company for many years. It was clear to me that starting Global Medical Imaging and my own business was the only way to make that happen.

What is your background, how did you get into the ultrasound equipment field?
I graduated with an "Applied Science" degree as a Biomedical Materials Engineer, from the UNC-Chapel Hill. While most other graduates from my curriculum went on to further their studies in Graduate schools or they took research positions with biotech companies, I choose a career in medical equipment sales with General Electric Medical Systems.

What products and services do you offer?
Global Medical Imaging is a “turn-key” ultrasound company. When I say turn-key, I don’t use this term loosely like you may have seen in advertisements. “Turn-Key” includes Leasing, Sales, Service, Parts, and Technical Support for any ultrasound system, but “Turn-Key” is more than just having equipment in stock and being able to deliver. I think we are one of only a few companies that have the experience, equipment, infrastructure, and capability to provide the same support and services that an end user would get if buying new equipment directly from the manufacturer. This means that we understand and can qualify what an end user's needs for equipment are and we can help to match those needs with the right brand and model of system. We can deliver the system, install the system, provide on-site training and service, and in the future, we can upgrade that same customer more economically than any other provider.

What separates GMI from the competition?
I think that a focused ultrasound track record is definitely the difference. My career and experiences have always been in the ultrasound industry. That is an asset to our customers attributed to 13 years in this industry, which includes the new and used markets. We have been in and seen almost every scenario and have a good idea how to handle almost anything. This level of knowledge and experience directly translates into more value for our customers as they receive the correct ultrasound system for their needs, superior service, and the right price every time.

Do you feel your technical expertise helps GMI?
Rather than ask a customer what they want, we ask the customer what they will be doing with an ultrasound system. Of course one of the questions we ask is “do you have a brand preference”, but sometimes end users and dealers don't realize there may be a different and sometimes less expensive system that will better meet their needs. Realizing that most of the used equipment that is sold back into the domestic US or even to the wholesale and international markets is less than ten years old, we have seen, sold, used, and know the service histories of almost every product on the used market. We have the technical expertise to sort through all the specific features and benefits of each system, and with this technical understanding of the products we sell, we have a broader understanding of the overall ultrasound market than even the new equipment manufacturers.

It must be quite an advantage to not only sell the equipment, but also be able to service it?
In any industry where a product is used and being resold there are always comparisons to the “Used Car” business. Although I personally don’t purchase used vehicles, I would also never purchase a “NEW” Ultrasound. Let me explain this a little better–If an end user can find a company like Global Medical Imaging that really understands their needs well enough to provide several qualified options that meet both their needs and price point, and can, after delivery, support that product as well as the original manufacturer would have when it was new, then the only difference between that “used” and “new” product is the overhead associated with the sales process. My point is that being able to understand problems and correct them quickly and as efficiently as the service teams from the manufacturer gives us not only an edge over our competitors in this used market, but it allows us to compete with the new equipment sales teams with products that are only one or two software or hardware revisions less than current, but that cost substantially less.

How will GMI adapt to Hospitals shrinking budgets?
Shrinking budgets generally help the reconditioned second hand ultrasound industry. Reconditioned ultrasound equipment stretches the imaging company’s purchasing dollars even further while providing the same level of reimbursements. This means that a reconditioned ultrasound machine can be a significant profit center for an imaging center or doctor’s office. Ultrasound equipment, whether new or used, is not usually a large expenditure for an imaging department. In fact, adding an additional “reconditioned” system can add revenue to an imaging department or small office.

How has new technology in ultrasound
affected your business?
With computer processor speeds getting faster and electronic design getting smaller, the manufacturers are able to make much more powerful ultrasound systems that are one third the size of a comparable product from five years ago. The first wave of these digital smaller ultrasounds did not have a huge impact on the second hand market, but in the last 6-12 months, more and more of this “next” generation of ultrasound is becoming available. Until now, smaller imaging departments and private offices have been fine with the larger, slower and less capable systems, but now that this “next” generation is available in a cost effective way, we have a great opportunity to upgrade almost anybody to a great system. We are focused on these market leading systems and have the inventory and expertise to help doctors and imaging departments move up to the next generation of ultrasound equipment cost effectively.

Being a new business owner, you have to wear many hats, how have you dealt with that?
First, I have a great team of people working with me. Second, as a Senior Sales Representative for GE Medical Systems for four years and the General Manager of another ultrasound sales, service, and distribution business for seven years, I have gained the organizational experience to balance all the responsibility.

Who are the key employees and what are their responsibilities at GMI?
Sheri Hauser and I have been working together for almost three years now. Sheri has an unbelievable level of understanding of both the ultrasound industry and an excellent track record in helping her client’s cost effectively meet their ultrasound equipment needs. Her overall business knowledge is also helping us build GMI the right way from day one.

Pat Canon joined our team in May of 2002 and brings to GMI over fifteen years of accounting experience. She treats all our customers just like they were her very own customers. It doesn’t matter to Pat whether your purchase was for a $75 box of paper or a $75,000 ultrasound system. She will follow up with the same amount of care, intensity, and focus.

Chris Starnes is our newest member. I have known Chris for several years and knew that he would be a perfect addition to our team. Chris has the ambition, assertiveness, and confidence to tackle even the most challenging service problems or issues and quickly address and resolve them.

Lastly, I have a full partner joining me in the first quarter of 2003. He brings with him an MBA from the Kenan-Flagler Business School at UNC-Chapel Hill and seven years of entrepreneurial experience having already successfully built and exited his own company. He will be primarily focused on the financial, operational, and strategic aspects of GMI.

As you can see from the team we have put together, we have a very strong foundation. All of us at GMI are totally committed to building this company the right way form day one.

What has going into business for yourself meant to you?
The biggest change is that I can now set goals for both myself and the business, and work to make those goals a reality. I think it is important to have ambitious but realistic goals. I look forward to the challenges of meeting our customer’s needs and building a new company with equal excitement. The reconditioned ultrasound industry continues to be an excellent industry if you have the right values, focus, and organization to succeed in a competitive business environment. Owning my own business has shown me that I can meet those goals and that the market and the ultrasound industry is not as bad as a lot of people would have everyone else believe. For those companies and people that are doing the right things, there is plenty of business out there. We are very focused on building our business around the strengths of the team we are putting together. This way we are able to execute on what we promise and our customer’s come away with an excellent experience. The secret is to identify your strengths and build your goals around those strengths. This way, everyone comes out a winner.

Where do you see the pre-owned market headed in the next 5 or 10 years?
No matter what the newest technology reveals, or how much smaller or cheaper or better ultrasound (or for that matter, any imaging modality) improves, there will always be a market for “re-conditioned” imaging equipment. Reconditioned equipment provides original equipment levels of performance at a more competitive price point. As the diagnostic imaging market continues to get more competitive, and budgets continue to shrink, this market will continue to remain attractive for doctors and imaging centers that are looking for market leading systems with a greater return on their investment. The key to making this work is to purchase from reputable, turn-key companies like GMI that can provide the same level of service and expertise as an OEM, but at a better price. We will continue to sell and service the market leading systems no matter what technological changes occur over the next 5 to 10 years. In a previous answer I made a comparison to the “used car” industry, and once again, I’d like to point out that the diagnostic imaging market is very different. The Used Imaging Market is much closer to the used airplane industry, in that there are very definite specifications that ultrasound equipment has to pass to re-enter into the market. If these specifications can’t be meet, then the equipment will not come back into the market. So, I think the "reconditioned" market will always be viable and for the few companies, like GMI, that can provide a "Turn-Key" solution.

What about new equipment and supplies?
We carry new peripherals, like VCR’s, MONITORS, and PRINTERS, and disposable supplies for these devices, but these are more or less to support complete ultrasound system sales. We have some sales discount programs that allow for extremely competitive pricing for recurring orders on supplies and consumable products when the need is consistent.

What is your philosophy on customer service?
Our customer philosophy is pretty simple. We are doing everything possible to anticipate any need. Nobody likes problems, not the customer or the vendor, but in real life, problems do arise. In a worst case scenario when problems do occur, we will do everything we can to make a situation right. The real answer here is that we have the experience to proactively avoid the problems we've seen already and quickly resolve those issues that can not be avoided.
What is the ultimate goal for GMI?
Our goal at GMI is to become the industry leader in reconditioned ultrasound sales and service. We want to be the first call for domestic retail customers and be the most respected name in the industry. We also want to work with and support the best wholesalers and international dealers who share our vision, values, and commitment to service no matter where in the world the sale takes place.

Our goal at GMI is to provide the best Ultrasound sale, service, or part available in the market to the end user customer, and to support those wholesalers and international dealers that are selling the same, at a fair profit so that we can continue to provide that service for many years to come.

For more information about Global Medical Imaging, call 800.958.9986 or visit www.globalmedimage.com