A growth in government investment will provide more buyers with the funds to purchase lockers despite rising prices
Los Angeles, CA (PRWEB) March 07, 2014
Buyers of locker systems have a buyer power score of 3.5 out of 5.0. Buyer negotiation power remained high during the past three years, partially due to the low level of product specialization and low switching costs. In the next three years, however, IBISWorld analyst Aileen Weiss says buyers will lose some of their negotiation power as demand increases and raw material costs go up.
In the past three years, the market share concentration for locker system suppliers was highly fragmented. Major companies in the market include Lyon Workspace Products LLC, Republic Storage Systems LLC and Edsal Manufacturing Company Inc. High competition aided buyers as manufacturers maintained their prices to attract more business. Additionally, the low level of product specialization made it easier for buyers to compare prices between manufacturers. According to Weiss, corporate profit has increased in the past three years, and buyers in the private sector have had a greater incentive to make new purchases. However, the lack of funding from government investment prevented other buyers from procuring products. Therefore, suppliers absorbed raw material costs and kept profit margins low in an effort to maintain lower prices. Because of these factors, buyers should procure lockers now when prices are relatively low.
In the next three years, slight improvements in the manufacturing process and additional customization options will increase product specialization and contribute to growing locker prices. As raw material costs continue to fluctuate, manufacturers will increase prices to maintain profit margins, and buyer power will go down. Furthermore, rising corporate profit and a growing number of businesses will increase buyer demand. Government investment is expected to pick up and provide additional buyers with the means to purchase lockers. This rise in demand will cause prices to go up and buyer negotiation power to wane.
Finally, buyers may ask for discounts for making early payments or placing bulk orders. Because lockers typically last 10 to 20 years, buyers should ensure they are satisfied with their purchase to avoid premature replacement costs. Ultimately, it is preferable for buyers to purchase locker systems now before prices rise. For more information, visit IBISWorld’s Locker Systems procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of locker systems. Lockers are made from a variety of materials, including wood, metal and plastic. Lockers serve as individual secure storage units for storing personal belongings. This report excludes general storage units, food storage units, cabinets and shelving, mailboxes and other furniture and fixtures.
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.