During the three years to 2013, the price of casting and splinting supplies price has declined due to an increase in government health expenditure
Los Angeles, California (PRWEB) February 27, 2014
Casting and splinting supplies have a buyer power score of 4.0 out of 5.0, meaning that buyers have a substantial amount of price negotiation ability when purchasing these products. “Prices for casting and splinting supplies have been decreasing during the three years to 2013 and are forecast to continue decreasing in the three years to 2016,” says IBISWorld procurement analyst Jonathan Noury-Elliard.
The increase in government health expenditure has helped prices become more favorable for buyers. “Despite fairly consistent demand, the increase in suppliers has increased competition,” says Noury-Elliard. Suppliers will become more competitive to help increase order quantity in an attempt to offset the decrease in price. In some instances, suppliers may be willing to reduce profit margins further to secure a sale and increase market share. This increase in competition may give buyers a greater opportunity to negotiate on price. Major suppliers of casting and splinting supplies include Johnson & Johnson, Stryker Corporation, Zimmer Holdings Inc. and Medtronic Inc.
The market risk for casting and splinting supplies is another large contributor to the high buyer power score. Because there is minimal volatility associated with price and price drivers, buyers can be confident that volatile conditions aren't artificially inflating prices. The market structure for casting and splinting supplies also contributes to the high buyer power score. Buyers experience an increased level of buyer power through low switching costs and high supplier competition. Thus, buyers can easily purchase products from a range of suppliers, allowing buyers to ensure the lowest price is reached. However, a low level of substitutes and a high level of product specialization work against the high buyer power score; negotiation power would be higher if there were multiple products from which to choose.
For more information, visit IBISWorld’s Casting & Splinting Supplies procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of casting and splinting supplies. Casts and splints are orthopedic devices that serve to protect and support fractured or injured bones and joints as well as to create a mold of existing structures, such as teeth. Casting supplies are made from materials such as metal, plaster or fiberglass that can be easily molded to the shape of the injured area. Splints can be custom-designed or ready-made in various sizes and shapes. Suppliers of casting and splinting supplies 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
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