Prices growth has been flat as operators keep prices low to compete with digital substitutes
Los Angeles, CA (PRWEB) February 15, 2014
The buyer power score for copying services is 4.3, indicating that buyers have significant power when negotiating for copying services. According to IBISWorld research analyst Jesse Chiang, “Buyers have significant leverage because they can easily switch copying service suppliers due to low switching costs and low service specialization.” Furthermore, readily available substitutes, such as cloud-based document management and copier leasing, give buyers many options when negotiating with copying services. Buyer power has, however, been limited by declining profit margins, which have been negatively affected by weak demand and rising paper costs.
There are more than 20,000 copying service suppliers, which include companies like FedEx Corporation, Staples Inc., Franchise Services Inc. and Office Depot. Switching between these suppliers involves minimal costs because copying services are fairly commoditized; there are very few differences between copied products; though differences may matter somewhat with color copies. Also, “service specialization is low,” says Chiang, “because the difference between specialty copying services is based on readily obtainable machinery or materials. With low switching costs and low specialization, buyers can choose between many operators without significant quality risks.” Buyers can leverage this ability to ensure that operators are offering the best rates along with the best service.
Available substitutes affect the copying service market in multiple ways. Buyers that do not find copying services that fit with their price or infrastructure needs can buy or lease a copy machine. Buyers can also switch from print documents to using a cloud-based system. These substitutes can each offer savings and convenience that are dependent on buyer size and scope, increasing buyer leverage.
In the three years to 2013, declining overall profit for the average market vendor hurt buyer negotiation power. Despite the rising cost of paper, suppliers have been unable to increase prices substantially because of deflated demand, and an increase in digital substitutes and shifts in corporate demand. Because of these factors, suppliers were less flexible when offering discounts, hurting buyer power. For more information, visit IBISWorld’s Copying Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of copying services for business use. Businesses that provide copying services typically offer black-and-white photocopies, color photocopies and a number of added features, such as collation. Photocopies, the primary copy services, are print reproductions of existing works, such as forms or various documents. The existing work can be manually loaded or uploaded online to a copy machine, which will duplicate the work. Suppliers include business service centers, office supply stores, mail service centers and various small copy service centers. This report does not include commercial printing or industrial printing services.
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.