by Lynn Shapiro, writer

Until 2004, Ray Phillips, owner of Drand Medical LLC in Oklahoma City was a computer broker.

"The metro area in Oklahoma City didn't have anybody selling medical devices," he says. So he seized the opportunity and began selling equipment out of his house. Today, he stores his inventory in a 10,000-square-foot facility.

He says the two philosophies that have made his business successful are: Do not specialize. "You limit yourself, " he says. "I want to offer a wide range of services."

The other, Phillips says, is in a bid situation, "Don't 'low ball' people."

"In a bid situation, nine times out of 10, I win because I don't 'low ball' people, I 'fair ball' them. They make money and I make money."

Recently, he said, he bought four truckloads of equipment. His bid was three times that of next the closest bidder.

The trucks contained everything from OR lots to endoscopy equipment. In addition to auctions, Phillips buys his medical equipment from thousands of hospitals and clinics across the US. He stocks it, and then sells it to more specialized dealers. He says that at any given time, 50 percent of his inventory is unsold.

As for the marketplace as a whole, Phillips says he's seen some cautious buyers lately, but that hasn't affected his business yet. "I believe that as long as you stay honest, everything will be okay. If you get greedy you cut your own throat."

Another source of business, he says, is DOTMed online, which has given him a wide range of contacts.

He's decided to increase the amount of refurbishing he's doing and has taken some classes on refurbishing OR tables. "I'm going to train my people [he has nine employees] to OEM specifications or above," he says.

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