Are you looking for the best places to sell medical supplies? If YES, here are 3 best places to sell medical supplies.
Doctors and other medical professionals tend to depend on high-quality equipment to treat patients. These equipment include gloves and masks (PPE) to crucial niche tools used by specific surgeons, doctors, and health professionals. However, with market size expected to reach 160 Billion USD by 2025, and a CAGR growth rate of 7.2 percent, starting a medical supplies company is an opportunity to consider.
Have it in mind that if you intend to sell or import medical supplies in America, you first have to obtain FDA approval for the supplies.
Approval by the FDA Center for Devices and Radiological Health (CDRH) is needed to export any kind of medical device to the United States. The procedure involves various steps: first of all, it is necessary to determine whether the product is considered a “medical device.” If not, authorization will have to be asked to other FDA departments.
In the United States, the device is expected to be classified according to CDRH rules. Depending on the characteristics of the product, it may be placed in regulatory classes I, II, or III. Classification is very important, as requirements and regulations vary accordingly.
For instance, while many class I products are eligible for exemption; class III products require a more detailed set of documents. Preparation and presentation of the marketing application is the last and fundamental step to obtain FDA approval.Also have it in mind that importers are expected to make sure the device meets all labeling requirements.
Also, the company will register at the FDA and declare the products it intends to sell on the American Market. Things like beds, walkers, and canes are easy to sell because they are often adjustable, and the chances of fitting the new buyer’s needs are high.
Other types of medical equipment, such as commode chairs or wheelchairs, are only useful for a specific type of diagnosis; therefore, the pool of buyers might be more limited.
With the right planning, you can build a successful medical supply business. You don’t necessarily need a strong medical background to do this, just knowledge of what medical professionals need and a marketing plan to make them more effective at what they do.
Buying and selling of medical supplies can indeed a profitable enterprise, especially if you are smart about which types of supplies to buy and sell. Nonetheless, here are the best places to sell your supplies.
Best Places to Sell Medical Supplies
Medical Facilities In Your Area
If there are any medical facilities in your area, you can start by contacting them and offer to supply them with their various medical equipment needs. Medical supply cost remains one of the most significant expenses in hospitals and other medical facilities.
It is a good idea to contact the facilities before you bring any equipment to their door, as you do not want to haul large equipment there only be told they are not interested. Ensure to send the facilities photographs and descriptions of each item or piece of equipment so they have a good sense of products you supply.
Many medical equipment shops source their inventory from wholesalers. You may also be able to sell the equipment on consignment, where you get a percentage of the sale of the equipment. Take your time to look up local medical equipment stores in your area and offer your services.
Some medical equipment shops can also refurbish broken equipment and turn damaged equipment into sellable equipment. This may save even damaged medical equipment from the charity shop or the dump and allow you to still turn a small profit from the equipment.
There are several online sites that allow you to sell goods for a small fee, such as Amazon, ebay.com, or craigslist.com, as well as sites that specialize in selling and buying medical equipment for a small fee, such as medibid.com, usedhm.com, disabledgear.com, or dremed.com.
You can also search online forums that relate to a certain disability and post equipment that may be useful for individuals with that disability in the forums. This way, you are advertising directly to individuals who may be the most interested in the equipment.
How to Start Selling Medical Supplies
The medical supply system is quite complex and involves multiple organizations that play differing but sometimes overlapping roles in medical related distribution and contracting. Nonetheless, here are steps to consider when looking to sell medical supplies in the United States.
Select A Medical Niche Or Underserved Market
Note that starting a medical supply business is more like starting and managing any other company in that you need to find what makes your brand unique. Immediately you find your target market, work to set yourself apart from competitors. Ask questions like these to better understand what you bring to the industry:
- Are you an expert in a medical niche and know what certain specialists need?
- Are you an ex-doctor or medical professional with real-life medical experience?
- Is there an underserved market that needs a reliable source of medical supplies?
- Do you have an idea for getting supplies to doctors faster or better, like a subscription service or convenient online portal?
Register Your Business
In the United States, after you must have conceived your idea; the next thing is to form your company. Choose whether you want to start as a Limited Liability Corporation (LLC), C-Corporation, or S-Corporation. Note that the type of business you choose will depend on your business structure and affect how you’re taxed, what fees you need to pay, whether or not you need to raise capital, and more.
It is recommended that you seek the expertise of a local accountant to help you decide what is best for your business and refer to the BizFilings business type comparison tool to get a better understanding of your options.
Remember that every state has its own guidelines and costs for forming a business, such as whether you need to produce annual reports or pay annual fees to stay operational. Understanding all of these details will help you choose the right business entity for your new medical supply venture.
Acquire Your Operating Licenses
Aside from registering your company, you will have to secure business licenses and permits necessary for a medical supply business.
Forming an LLC or C-Corp doesn’t necessarily mean you can legally operate, just that the state knows you exist—you must get your licenses or permits secured before beginning. Note that fees will vary from state to state and may be based on annual revenue.
Very necessary to the success of any business is accurate bookkeeping and a strong financial footing. You are expected to have a clear understanding of how you plan to fund your medical supply company and how this funding will influence your budget now and in the future. A few funding options include:
- Bootstrapping: This means depending solely on your own money.
- Small business loan: To secure a loan, you will have to seek the expertise of a financial lender to get financing.
- Investors: With an investor, you will work with private entities to receive funds and then share part of your profits as your business grows.
- Crowd-funding: Use a site like gofund to fund your business with donations from people around the world. This is a good option for companies with a socially driven mission.
Note that the viability of these medical supply financing options will vary depending on your business size and start-up costs and, each option also has its own benefits and drawbacks. For instance, you don’t have to share your profits or make interest payments by bootstrapping, but that may not be an option if you don’t have access to start-up capital.
Identify Vendors And Distributors
Have it in mind that the foundation of your supply business will be working closely with medical distributors and vendors.
These are large-scale manufacturers who produce millions of supplies each year who then sell to distributors like yourself so you can market and sell the wares on a smaller scale. Nonetheless, when selecting your supplier(s) and vendor(s), consider a few key factors:
- Future innovation: Does your supplier have plans to grow and innovate in the coming years, ensuring that you stay relevant as a business as well?
- Communication: How well are they at communicating with you? Are their terms and business details clear?
- Expertise: How well do they know their market? How much can you benefit from their expertise?
- Quality: Are they as committed to quality as you are?
- Delivery systems: Will their delivery systems make it easier to run your business or are they complicated and difficult to manage?
In general, ensure to work with a medical supply mentor or expert to better understand the qualities of successful medical supply partners and determine which potential vendors and distributors would be best for your specific needs.
Market And Promote Your Business
Once you have established your business and how you intend to operate, the only thing left to do is execute your business and marketing plan. Within this period, you will open your warehouse, website, or both, ensuring that you have a place to house the medical supplies and/or manage orders.
Also, remember that you need to use this time to develop marketing materials and start reaching out to potential clients. Your industry may need different marketing methods, so be sure to do your market research first. This will help you dial in on who you want to target and how to best reach them.
Finding the right manufacturer or wholesale distributor is the most important aspect of starting and selling medical supplies. If you want to sell medical supplies, you will need someone to manufacture them and even supply them to you.
Therefore, take your time to research and seek a reputable manufacturer or distributor that can provide you with quality supplies.