As the economy continues to recover through 2016, prices will continue to rise at a slightly higher rate due to further increases in demand from healthcare and businesses
Los Angeles, CA (PRWEB) December 14, 2013
Editing and proofreading services have a buyer power score of 3.8 out of 5. The buyer power score of 3.8 signifies a high amount of negotiating power. According to IBISWorld analyst Michelle Hovanetz, this score reflects a large number of suppliers, very low market share concentration, little specialization, very low switching costs and low volatility within the market. Factors decreasing buyer power include a lack of substitutes and rising prices.
Prices have risen consistently over the past three years, and are forecast to continue rising at a slightly higher rate through 2016. Price increases are due to a recent rise in demand stemming from healthcare services and businesses, continues Hovanetz. Demand is expected to increase substantially as the economy recovers, thereby causing price increases in the future. A large number of suppliers and increased foreign competition help moderate rising prices. Thanks to lower wage costs, foreign competitors are able to offer lower prices, which helps to keep domestic prices from rising sharply.
The number of suppliers of editing and proofreading services has grown drastically as internet usage has increased. Examples of major vendors include Scribendi Inc., Cactus, Synchrogenix and Papercheck LLC. The majority of suppliers are nonemployers. The internet has made it simple for independent editors to find work, and has also increased buyers' accessibility to editing services, thereby expanding the market. The large number of competitors and extremely low market share concentration help to moderate price increases and provide buyers with leverage when negotiating price. Buyers also benefit from a low level of price volatility. The most significant cost to suppliers is wages. Labor is the only primary input, and suppliers do not rely heavily on other inputs that could significantly alter price. Wage growth has been negligible in recent years, and labor shortages are not a concern. Thus, there is little risk in the supply chain, and prices are unlikely to increase rapidly.
Negatively impacting buyer power is the lack of direct substitutes for editing and proofreading services. Buyers must pay the prevailing market price in order to use the service, as there are no equivalent alternatives beyond developing an in-house editorial department. For more information, visit IBISWorld’s Editing and Proofreading Services procurement research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of editing and proofreading services. Editing and proofreading services are used across all fields to correct grammar and language usage and to improve the readability of reports, articles, business plans, brochures, presentations, advertisements, websites and any other text documents. Proofreading services include corrections to grammar, punctuation and spelling. Editing services are more comprehensive and will generally correct errors in grammar, punctuation, syntax, spelling, consistency and formatting, often making more substantial changes to the written work. This report excludes letter or resume writing, word processing, desktop publishing and other secretarial services.
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.