Price declines will continue at a slower rate due to continuously increasing demand for office equipment mitigating falling technology costs
Los Angeles, CA (PRWEB) October 21, 2013
Photocopier leasing services have a buyer power score of 4.6 out of 5, signifying very high negotiating power for buyers. This score reflects the availability of a wide variety of suppliers, a high level of substitutes and very little volatility within the market, all of which allow a buyer to negotiate a lower price. Alternatively, factors decreasing buyer power include switching costs, medium market concentration that somewhat favors major suppliers like Xerox, Konica Minolta, Kyocera and Ricoh, and the service’s degree of specialization. “Photocopier lease contracts must consider many factors, including photocopier model, length of lease, lease type and additional services,” says IBISWorld procurement analyst Michelle Hovanetz. “Each of these may be negotiated for a better price.”
The large number of photocopier leasing suppliers and supplier types gives buyers some leverage. Manufacturers offer substantial quantity discounts; however, their significant market share inhibits bargaining power for small to medium-size businesses. Retailers offer more one-on-one customer service, expertise across multiple brands and a variety of office equipment beyond photocopiers, typically in exchange for slightly higher prices. In addition, there are many third-party lessors offering a variety of business financing solutions, providing an opportunity for increased bargaining power with somewhat increased risk. “Buyer power is aided by the presence of substitutes in the form of renting, purchasing or all-in-one desktop machines,” adds Hovanetz. “The low level of volatility in price favors buyers, as there is little threat of sudden spikes.”
Buyers’ negotiating power is limited by substantial switching costs. An average lease will lock in a buyer for one to five years. Lease terms make it difficult or very expensive to terminate a contract once it is made. This factor emphasizes the importance of diligent research and analysis when choosing a lease and lease provider. Buyer power may also be limited by product specialization, as lease and vendor options may be limited on some brands and models. For more information, visit IBISWorld’s Photocopier Leasing procurement research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist lessees of business photocopiers. A photocopier is a machine that creates paper copies of documents and images. This report includes multifunction printers, but excludes all-in-one desktop printers. The report also excludes photocopier purchases. Lease terms may include equipment upgrades during the lease period, purchase of equipment at an agreed-upon residual price, equipment service and maintenance, and supply of consumables such as ink and toner cartridges. Photocopier lessors include manufacturers, retailers and third-party lessors.
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
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.