Price growth has been the result of increasing corporate profit, the number of businesses nationwide and the percentage of services conducted online boosting demand for equipment rentals.
Los Angeles, CA (PRWEB) March 21, 2014
The buyer power score for audio visual equipment rental is 2.9 out of 5, reflecting a medium level of buyer power. However, this score is partially inflated due to the fact that low market share concentration has not contributed as greatly to buyer power as would be expected, says IBISWorld analyst Kayley Freshman-Caffrey. Rather, venues either offer their own audio visual equipment rental service or select a preferred supplier to provide them. The use of preferred suppliers qualifies as product specialization, wherein suppliers specialize in providing equipment rentals to particular facilities or localities, limiting a buyer's ability to choose a supplier best suited to their needs. Major market suppliers include PSAV, SmartSource Rentals and Creative Technology Group Inc.
The unavailability of reasonable substitutes to audio visual equipment rental also negatively impacts buyer power. To produce an event properly, it is necessary to acquire audio visual equipment. While it is possible for buyers to purchase their own equipment and bring it to the facility, this is often impractical, continues Freshman-Caffrey. An average buyer would not use the equipment often enough to recoup the purchase price of the product. Additionally, it would be costly to transport heavy and bulky audio visual equipment from event to event. It is therefore best that buyers source their audio visual equipment from a supplier that is close to the venue. As a result, they have little choice but to rent the equipment they need.
The primary factor benefiting buyer power is low price volatility market-wide. This low volatility results from low volatility among demand drivers for the service, including the number of US businesses and the percentage of services conducted online. Because demand changes gradually, prices do as well, because most suppliers price their rentals based on market conditions. Low volatility improves buyer power because it protects buyers from facing extreme fluctuations in price. Although prices are rising, they are increasing gradually and predictably, allowing buyers to accurately plan and budget for their rental purchases. Overall, low price volatility balances against high product specialization and the low availability of substitutes to give buyers a moderate level of power in the market. For more information, visit IBISWorld’s Audio Visual Equipment Rental procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of audio visual equipment rental. Audio visual equipment rental involves a buyer paying to borrow audio visual equipment for a predetermined duration. Rented equipment includes projectors, speakers, backdrops, monitors, lighting and more. This report will cover procuring audio visual equipment rentals for use at a conference, presentation or similar event. Audio visual equipment rental for the purpose of motion picture production is not included.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
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.