Food Cooking & Smoking Machinery Procurement Research Report Now Available from IBISWorld

The price of food cooking and smoking machinery increased at a moderate rate during the past three years as the economy slowly recovered as people returned to eating out. To help procurement professionals make better buying decisions, business intelligence firm IBISWorld has added a report on the procurement of Food Cooking & Smoking Machinery to its growing collection of procurement research reports.

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IBISWorld industry market research
The price of food cooking and smoking machinery has been increasing due to higher input costs and freight costs

Los Angeles, CA (PRWEB) December 31, 2013

Food cooking and smoking machinery has a buyer power score of 3.1 out of 5. The score means that suppliers have slightly more power in negotiations, based on their ability to raise prices on food cooking and smoking machinery, which have gone up at an annualized rate of 2.4% during the three years to 2013. According to IBISWorld analyst Jeffrey Cohen, “Supplier costs increased due to higher purchasing, freight, and gasoline costs, thus prompting them to raise prices. Factors that boosted buyer power include low switching costs and a low level of product specialization.”

The price of food cooking and smoking machinery increased at a moderate rate during the past three years as the economy slowly recovered. A growing number of consumers abandoned prerecession habits and spent more money on meals at restaurants and traveling. “As consumer spending grew, demand among key buyers, specifically restaurants and hotels, increased,” Cohen says. “As demand increased, distributors responded by increasing prices in an effort to expand slim profit margins.” Additionally, distributors were hit with a variety of problems during the past three years that further negatively affected buyers. As the price of steel, a key input in the production of food cooking and smoking machinery, increased, manufacturers passed this cost off to distributors. In addition, freight costs and the price of gasoline increased during this time and distributors passed these costs off to buyers by increasing the overall price of products. These trends have reduced negotiation power for buyers because distributors are defined by slim profit margins and are less willing to negotiate.

Buyer negotiation power is positively affected by the fact that food cooking and smoking machinery are standard products. Because there are hundreds of suppliers of food cooking and smoking machinery in the retail, wholesale and manufacturing channels, buyers have a wide selection to choose from (though wholesalers are the main suppliers typically selected). In addition, when a buyer wants to switch suppliers, this is relatively easy because several suppliers buy products from the same manufacturer and have vast experience serving buyers in various industries. For more information, visit IBISWorld’s Food Cooking & Smoking Machinery procurement research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to help buyers of commercial food cooking and smoking machinery. Food cooking machinery includes a variety of equipment used to cook food such as, fryers, ovens, ranges, grills, rotisseries, kettles, griddles, steamers and charbroilers. Products excluded from this report are warmers, toasters, concession and storage equipment. Sales channels through which food cooking and smoking machinery are sold include direct, mail order, online, retail and wholesale, with direct sales being the most common. The main buyers of these products are restaurants and hotels, educational institutions and sports arenas.

Executive Summary
Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast
Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Regulation
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Imports
Competitive Environment
Market Share Concentration
Vendor Financial Benchmarks
Switching Costs
Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements
Negotiation Questions
Buyer Power Factors
Key Statistics

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.


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  • Danielle Goodman
    IBISWorld
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