As consumer spending has recovered from the depths of the recession, consumers have spent more in the retail sector, and growing retail activity has led to higher demand and prices for cash vault services
Los Angeles, CA (PRWEB) March 13, 2014
Cash vault services have a buyer power score of 3.9 out of 5, representing a high level of buyer power. “Buyers benefit from the standardization of the service across many providers, which forces those providers to compete heavily on price,” according to IBISWorld procurement analyst Dale Schmidt. In addition, cash vault services are rarely purchased alone. Instead, buyers typically bundle the service with other commercial banking or cash management services to lower the price of each individual service, and simplify financial services by buying them all from the same vendor. Major vendors include Loomis, Brinks, Wells Fargo & Company and JPMorgan Chase & Co.
Buyers also benefit from the fact that prices do not change significantly from year to year. Cash vault services have long been a widely accepted service that commercial banks and security service providers offer, as almost all businesses that deal with an intake of cash and coin require these services. “As a result, the price of the service moves with the business cycle, although there is always steady demand,” says Schmidt. Buyers can therefore be relatively certain that the price will not change significantly over time and can lock themselves into long-term contracts as a way to lower the final per-year price.
On the other hand, the wide acceptance and near necessity of cash vault services mean that there are no usable substitutes on the market. Buyers’ inability to purchase a different good or service in place of cash vault services diminishes buyer power. In addition, the market exhibits a moderate degree of concentration, although concentration can be higher depending on the array of services demanded.
For more information, visit IBISWorld’s Cash Vault Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of cash vault services. Cash vault services involve the storage and processing of cash payments and withdrawals. This service allows for a regular supply and secure storage of cash and coin at a third-party location. This service does not include the transportation of cash and coin, only its storage and tracking.
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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