Forecast price increases will be driven by rising demand due to aging population trends, healthcare spending and heightened regulations
Los Angeles, CA (PRWEB) December 25, 2013
On a scale of one to five, with a higher number indicating better negotiating conditions for buyers, cardiac pacemakers have a buyer power score of 3.3. This score reflects the fact that neither buyers nor suppliers command an overwhelming amount of power when negotiating supply arrangements. “Factors eroding buyer power include high demand, which is expected to continue rising over the next three years; high market share concentration, a medium level of product specialization and few substitutes,” says IBISWorld business research analyst Keiko Cadby. “Nonetheless, intense vendor competition and low switching costs give buyers a degree of leverage over suppliers.”
Increasing demand, fueled by demographic trends, support these rising prices. More than 85.0% of cardiac pacemakers are used by adults aged 65 and older, and an increasingly aging population will further add to demand. “High market share concentration allows the monopoly of a few manufacturers to set list prices, and the medium level of specialization and low level of substitutes for cardiac pacemakers makes it difficult for buyers to seek lower prices elsewhere,” says Cadby. The excise tax on medical devices further erodes manufacturers' motivation to lower prices, and pressure to remove and replace faulty products from the market is a disincentive for suppliers to reduce profit margins.
Despite rising prices, buyers can take advantage of intense supplier competition and low switching costs. A request for proposal with set maximum prices can elicit deeper discounts from competing manufacturers, distributors and wholesalers. Because cardiac pacemakers are small, low-weight items, buyers can make purchases from a variety of locations and vendor types regardless of distance. Group purchasing organizations are especially useful as a purchasing tool to increase buyer power by pooling member needs into larger volume purchases; however, they do not necessarily draw deeper discounts for individual buyers with large orders. If possible, buyers should combine purchase orders for cardiac pacemakers with other medical products also offered by the supplier. Major vendors include Boston Scientific Corporation, Medtronic Inc. and St. Jude Medical Inc. For more information, visit IBISWorld’s Cardiac Pacemakers procurement research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of cardiac pacemakers. This definition does not include related products such as cardiac pacing leads, implantable cardioverter defibrillators and cardiac recorders. Cardiac pacemakers are small, battery-operated devices that track the heartbeat of a patient and correct the rhythm or beat of their heart when it is too fast or too slow. There are various types of cardiac pacemakers, including demand pacemakers, fixed-rate pacemakers and artificial cardiac pacemakers. Suppliers of cardiac pacemakers include manufacturers, distributors and wholesalers.
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.