With widespread adoption of bar code systems, suppliers compete to differentiate their products, placing downward pressure on prices
Los Angeles, CA (PRWEB) October 12, 2013
Bar coding software has a buyer power score of 4.2 out of 5. This score reflects positive market conditions for buyers. The average price of bar coding software has steadily declined over the past three years. “Despite high market share concentration, competition among suppliers is high,” according to IBISWorld procurement analyst Erich Abellera. Widespread adoption of bar code systems results in suppliers competing on price to win new customers and convince current users to upgrade. This trend has helped place downward pressure on prices, which are expected to continue declining over the next three years. In addition, prices for bar coding software are not particularly volatile, so buyers face little risk of prices increasing suddenly.
Bar coding software is also fairly standardized. Although suppliers offer varying features and levels of support, the core functions of bar coding software is similar across suppliers. “Despite the low level of specialization, buyers face a lack of substitute goods,” says Abellera. Bar codes are used internationally to help identify and track packages and documents. Bar coding software helps businesses adhere to international standards of identification to ensure consistency and accuracy. Major vendors of this software include Seagull Scientific, Euro Plus d.o.o., Teklynx Newco SAS and Loftware Inc.
Although the software sector is quickly evolving, bar coding software is considered to be in the mature phase of its life cycle. Bar code systems have been in place for several decades, and updates to software are incremental. However, the widespread use of bar codes helps maintain high demand for the software, which prevents prices from dropping faster. Businesses rely on bar coding systems to operate efficiently, and the lack of substitutes somewhat limits buyer power. Nevertheless, overall market conditions greatly benefit buyers.
For more information, visit IBISWorld’s Bar Coding Software procurement research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of bar coding software. This software allows businesses to generate bar codes, which are scanned to track inventory, production status, documents, shipping, healthcare patients and more. Bar codes typically consist of parallel lines of varying widths and spacing, although other shapes can also be scanned.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Vendor Financial Benchmarks
Buying Lead Time
Key RFP Elements
Buyer Power Factors
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