The Fastest way to set up an Account With Suppliers

Have a generic credit application on hand. We even made a sample one you can use as a reference below. This is a document to provide basic info to a supplier about your lab that includes

  • Lab shipping and billing addresses, 
  • bank info and contact
  • FEIN and D&B number 
  • date founded and where it was incorporated
  • Contact email addresses for purchasing and invoicing

Credit applications generally also include trade/credit references. These are suppliers who can say your lab reliably pays its bills on time. 

This document can also allow you to get credit terms with a supplier. Rather than pre-paying for everything with a credit card, the supplier will invoice the lab and they will have 30 days to pay that invoice by bank transfer or other means. 

Suppliers Vary in Account Setup

Suppliers vary widely in their requirements to set up an account and extend Net 30 credit terms. The simplest is registering online and ordering (Amazon). Some suppliers require more work to set up account, but extend terms immediately (Thermofisher). Some are draconian, requiring the most stringent requirements like multiple bank accounts to check as well as full financials of the lab (BD Biosciences). 

Some account set up requirements are negotiable, some aren’t. No matter what though, a generic credit app will save your lab time in getting set up to order with suppliers.

Glossary of useful terms

FEIN – Federal employer identification number (like social security number for a business)

D&B number (DUNS number) – The D-U-N-S Number is a unique nine-digit identifier for businesses. It is used to establish a business credit file.

Credit application – vendor application to get Net30 terms extended

Credit terms – the company has extended a line of credit to you for making Net 30 purchases. There is a spending limit.

Example Generic Credit Application

A generic Credit application with key info to set up an account on Net 30 terms or when filling in a web form to set up a new account with a supplier.

Intelligent Negotiating

The purpose of this blog is to help you understand the techniques for negotiate pricing with scientific suppliers. As you look to buy supplies or equipment for the lab, there are plenty of opportunities to overspend. Be careful! So how do you make the most of your money?
There are three concepts/processes you should understand to help you along the way:
  1. How suppliers and sales reps operate
  2. How and when to ask for a discount
  3. Industry pricing and the term “List Price”

List Price

Don't Pay This Price
In simple terms, List Price is the price of an item listed publicly on a supplier’s website. It is helpful to know if the List Price is a “fair” price, and if you have room to negotiate. We performed a case study, go to here, where you can see data showing how much wiggle room there is to negotiate pricing from the big suppliers. Generally, for the suppliers who sell anything and everything (Fisher, VWR, MilliporeSigma, etc.), you should try to NEVER pay list price.
Please take note that the price you should pay can be up to 80% off List Price. Shopping at scientific suppliers is nothing like Amazon where a market dictates pricing based on quality, reviews, and lots of competition between sellers. You have to be much more diligent with scientific shopping.
For companies that sell a specific line of products (Abcam, NEB, Teknova, etc.), paying List Price is acceptable most of the time.

How suppliers and sales reps operate

There are three branches of a supplier that you’ll interact with: Customer service, technical support, and sales reps. Suppliers hire sales reps to visit labs, call scientists, and email you to buy their supplies. A few points you should know:
  • It is their job to get you to buy from them.
  • Their income is based on two things, 1) how much you buy from them and 2) how close to List Price you pay…the closer to List Price, the more money they make.
  • Some have a science background, many don’t.
Most sales rep are in the “field” visiting scientists. Therefore they can be very unresponsive. Set your expectations accordingly when asking them for help. You can call customer service, but rarely can customer service help you with pricing. You should only call customer service when you need an order update or there’s a problem with the order, but not for pricing info or discount quotes.
The process for getting a quote is usually not fast. Your request first goes to the sales rep, who is possibly out in the field. Then, the sales rep might not have the authority to grant a particular discount, so they have to go to their manager for approval. This takes time, so if you need the items ASAP you might not be able to wait for a quote.

How and when to ask for a discount

The best times to request a quote are:
  1. when buying new and used equipment
  2. bulk quantities (five +)
  3. with a set shipping schedule (aka “standing order”)
  4. when your current price is List Price
Some tactics that help:
  • Use data. “We’ve spent $10,050 with your company this year, at what point do we qualify for the next tier of discounts?”
  • Use the competition. “SupplierX has quoted us this price, but we’d much prefer to buy from you. Can you beat or match their price?”
  • Sample request. “We’re interested in trying a new item in the lab – is it possible to get a discount or free sample?”
  • Be nice. Sales reps are people too. Kindness can get you lower pricing.
  • Don’t take no for an answer. If they provide a quote with a small discount and you think you can do better, don’t be afraid to ask for a larger discount – the worst they can say is no.
No matter the price, never ignore these three factors which can significantly increase the backend cost of the item:
  1. Shipping cost
  2. Timeline to deliver (delays mean your lab is paying your salary to wait)
  3. Product quality. Keep in mind…you get what you pay for. Low cost products are probably low quality. If you’re experiment fails because of low quality supplies, what is the cost of that lost experiment? Was it worth saving $50?
Happy spending!

Glossary of useful terms

  • List price – the public price of an item on a supplier website before applying lab discounts or promo codes
  • P.O. – Purchase Order. A document stating what you intend to buy.
  • Quote – a documented price that is not List Price
  • Sales Representative (sales rep) – contact person at a vendor/manufacturer. They responsible for managing your labs account and pricing, and can help out with order issues. They are assigned to regions of the country, state, or city.
  • Standing PO/order – An order for a fixed quantity of items with a recurring shipping schedule.
  • Supplier– a company that sells goods and services to your lab. They may or may not be a Manufacturer.

HIRING — Support Virtual Lab Manager

Support Virtual Lab Manager at a growing life science company

If you have experience with lab management, purchasing, basic accounting, or customer service, apply!

ABOUT HAPPILABS

HappiLabs is a small business with a startup mentality in Chicago that provides a service to scientists called the Virtual Lab Manager. We support scientists in various ways, virtually, which includes acting as an outsourced purchasing department (some might say a Personal Shopper) for biotech companies and scientific research labs.

We have a mission: to improve the happiness of scientists and the quality of their research.

By helping scientists do their job, we are helping all the people on the planet who benefit from inventions, creations, and knowledge that scientists create.

Purchasing and Customer Service ScientistYou will work out of our Chicago office where you’ll support our Virtual Lab Managers (who are PhDs or long-time lab managers) as they manage labs across the country. You will be interacting with suppliers, freight companies, accountants and scientists.

You will be trained to be one of the best lab managers in the world.

EXPERIENCE

A strong candidate will have one of these backgrounds:

  • Lab manager or tech experience in a lab
  • Logistics or customer service experience (does not need to be in the sciences)
  • Purchaser or bookkeeper
  • Minimum Bachelor’s degree

RESPONSIBILITIES

  • Utilize various apps and software for managing labs
  • Communicate with suppliers (sales reps, technical help & customer service) to obtain pricing and technical info, place orders, retrieve order updates, and solve logistics and supply chain problems
  • Keep detailed accounting records
  • Report progress and solve problems at team meetings

TIMEFRAME

Looking to start now, preferably in Chicago.

COMPENSATION

  • Full-time, salary
  • $35-55k, depending on experience
  • Medical and Dental health benefits
  • A t-shirt, free coffee and snacks at the office

SKILLS AND TRAITS YOU SHOULD HAVE

We want a long-term commitment, someone who will help a small company grow into a large one.

  • Tech savvy (very good with a computer, its keyboard and multiple monitors)
  • Proactive mentality – help without being asked to help, and an ability to predict problems
  • Knowledge of hardware or mechanical engineering, and/or chemistry, and/or molecular biology
  • A passion for science and desire to make a difference in the world.
  • Confident presence on the phone. We frequently call suppliers

===== APPLY NOW! ======

CLICK this link –> HAPPILABS JOB APPLICATION (VIA A GOOGLE FORM)

It will not hurt to connect with Tom on LinkedIn.

We’re hiring a Virtual Lab Manager

Virtual Lab Manager at a growing life science company

If you have experience with lab management, purchasing, or customer service in the sciences, apply!

ABOUT HAPPILABS

HappiLabs is a small business with a startup mentality in Chicago that provides a service to scientists called the Virtual Lab Manager. We support scientists in various ways, virtually, which includes acting as an outsourced purchasing department (some might say a Personal Shopper) for biotech companies and scientific research labs.

We have a mission: to improve the happiness of scientists and the quality of their research.

By helping scientists do their job, we are helping all the people on the planet who benefit from inventions, creations, and knowledge that scientists create.

Purchasing and Customer Service ScientistYou will co-manage a minimum of two labs. We are “virtual” so your job consists of sitting in our offices and communicating with scientists, in other parts of the world, about what they need to run their experiments.

You will be trained to be one of the best lab managers in the world.

EXPERIENCE

A strong candidate will have one of these backgrounds:

  • Lab manager or postdoc (or superb grad student) who has managed people, experiments, and budgets
  • Purchasing agent
  • Sales rep in the life science industry (but this is NOT a sales job)

RESPONSIBILITIES

  • Communicate with engineers & scientists to understand their needs and experiments
  • Communicate with suppliers (sales reps, technical help & customer service) to obtain pricing and technical info, place orders, retrieve order updates, and solve logistics and supply chain problems
  • Keep accounting records organized
  • Report progress and solve problems at team meetings

TIMEFRAME

Looking to start now, preferably in Chicago.

COMPENSATION

  • Full-time, salary
  • $50-70k, depending on experience
  • Medical and Dental health benefits
  • A t-shirt, free coffee and snacks at the office

SKILLS AND TRAITS YOU SHOULD HAVE

We want a long-term commitment, someone who will help a small company grow into a large one.

  • Tech savvy (very good with a computer, its keyboard and multiple monitors)
  • Proactive mentality – help without being asked to help, and an ability to predict problems
  • Knowledge of hardware or mechanical engineering, and/or chemistry, and/or molecular biology
  • A passion for science and desire to make a difference in the world.
  • Confident presence on the phone. We frequently call suppliers

===== APPLY NOW! ======

CLICK this link –> HAPPILABS JOB APPLICATION (VIA A GOOGLE FORM)

It will not hurt to connect with Tom on LinkedIn.

An Analysis of Women-owned Scientific Suppliers

Summary

When a lab hires HappiLabs to be their virtual lab manager and do their lab shopping, we want to make sure we buy from suppliers who fit the values of the lab. Recently, one of our customers asked, “Who are the female owned suppliers? We’d like to buy from them.” Therefore, we hired Dr. Vidhya Sivakumaran (above photo), a cardiovascular–focused postdoc from Loyola University, to do research on the topic. This is an informal study assessing the population of women-owned suppliers of scientific supplies, services, equipment, and reagents.

happilabs shops for women-owned scientific suppliers
The 70 companies that were surveyed for this analysis

Methods

  1. We selected 70 suppliers with whom HappiLabs has purchased from over the past 6 months
  2. Scanned their website to identify the sex of ownership
  3. If it wasn’t clear, we confirmed website findings with a phone call or email

Note: If we missed any women-owned business beyond the 70, please notify us: hello at happilabs.org

Discussion

It is well know that most industries are male-dominated. However, this is slowly changing and with this many labs are looking to buy and work with women-run scientific suppliers when it comes to purchasing pipette tips, chemicals, antibodies, centrifuges, etc. It was our hypothesis that there are few women-run businesses. Based on our research, this is true. However, science is doing better than the Fortune 500.

Lab shopping for female owned science businesses
92.9% male vs 7.1% female owned scientific suppliers

From the sample we looked at, 5 out of 70 or 7.1% of science suppliers are owned and/or run by women: DotScientific, Chemglass Life Science, Gilson, Macherey-Nagel, and Science Exchange. This is slightly higher than the 4.8% of fortune 500 companies run by females (Catalyst.org). Yay science!

happy labs shopping for women-owned scientific suppliers

We did find out through the course of our study that women-owned businesses out-survive male-owned businesses in several industries and areas, such as education and restaurant establishments (Kalnins et al, Journal of Business Venturing, 2014).

We also observed that only 16.9% of corporate board seats were held by women in 2013, with little progress in narrowing the gender gap (Huffington Post). Michelle Rowley, a tech entrepreneur and founder of Code Scouts (a non-science business), knows this feeling all too well. She was quoted in Entrepreneur magazine as saying, “that is a weird dynamic – being the only woman in the room – and they are all staring at you because they have to. I thought, I wonder how the dynamics would change if we could get more women involved.”

How does HappiLabs want to help? HappiLabs is interested in supporting women-run companies by making it easier for scientists to purchase supplies and services from them. We also plan to reach out and possibly work with several groups that promote women in science, such as AWIS Chicago, the Field Museum Women in Science, Women in Bio, and the Chicago Collaboration for Women in STEM.

Please share this post with other scientists who might be interested in knowing about women-owned scientific suppliers. And sign up to receive our monthly newsletter with updates about tips and suggestions for being a conscious shopper (and user) of scientific supplies: