The forecast drop in price is expected to continue benefiting buyers, and further expected declines in component prices and growing competition among suppliers will drive prices down even further.
Los Angeles, CA (PRWEB) November 06, 2013
Computer printers have a buyer power score of 4.0 out of 5.0. The score reflects a beneficial pricing trend for buyers, with a steady decline during the past decade. Price-based competition has led to falling prices and greater purchasing power for buyers as vendors undercut each other's prices. “Because of suppliers' low profit margins and high competition from manufacturers overseas, buyers have some leverage when negotiating price; however, due to high market share concentration, buyers have few alternative suppliers to choose from,” IBISWorld procurement analyst Andrew Krabeepetcharat says.
There is no prevailing market price for computer printers because each printer is priced based on variety of factors. “The prices for computer printers are generally determined by quality, speed, variety of functions and reliability,” Krabeepetcharat says. Computer printers within a certain set of specifications have a low level of variability; however, computer printer suppliers offer a wide range of printers with different print qualities, speeds and functions, resulting in a broad price range. The HP Deskjet Printer 1000 can be purchased for $35, representing the low end of the price range, but a high-end, consumer-level printer with photo capabilities can cost more than $10,000, representing the high end of the price range. Currently, the market’s largest players include Canon Inc., Dell Inc., Hewlett-Packard Company and Samsung.
The price of computer printers has been declining in the past decade. This is mainly because of the falling price of semiconductors and electronic components, which has prompted manufacturers and retailers to lower market prices to undercut competitors. During the three years to 2013, growing private investment in computers and software, and higher corporate profit have increased demand for computer printers, allowing suppliers to maintain prices that otherwise might not be possible. However, as the percentage of services conducted online continues to grow rapidly, computer printers will continue to become less essential for businesses, reducing overall demand and prompting suppliers to lower prices to incentivize buyers.
Due to a steady trend in declining prices, buyers do not need to enter into any long-term contracts. To avoid holding onto outdated equipment, buyers should purchase computer printers when they are needed. Furthermore, switching costs for buyers are low, giving buyers more influential negotiating power. Major vendors will offer competitive prices and customer service in an attempt to keep existing customers. For more information, visit IBISWorld’s Computer printers procurement research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of computer printers. Computer printers are peripheral machines that create an image on paper from an electronic document. Computer printers also often include scanning, faxing and document-copying functions. This report does not include high-capacity commercial printing devices or large-scale photo printing. Suppliers include manufacturers, wholesalers and retailers.
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.