Prices are expected to continue rising over the next three years as the economic recovery helps increase the number of businesses and corporate profit, bolstering demand for taxation law services
Los Angeles, CA (PRWEB) March 24, 2014
Taxation law services have a buyer power score of 2.8 out of 5. This score indicates that buyers have a moderate amount of negotiating power due to the high number of suppliers, financially stable vendors and low price volatility. With more than 150,000 tax law firms, there is a high level of competition among suppliers. As a result, law firms are more willing to negotiate lower hourly fees in order to gain market share and revenue. “Small law firms, employing fewer than 10 attorneys, are more willing to negotiate prices than large firms, as competition is even stronger among the small firms,” says IBISWorld procurement analyst Caitlin Newsom. “Additionally, because the average supplier is financially stable, buyers do not have to be concerned about the law firm going bankrupt.” The lower risk of the supplier helps buyer power because the buyer has many stable suppliers to choose from.
Buyer power is also helped by the low price volatility for taxation law services. Due in part to the heavy competition, suppliers are constrained in raising their prices too quickly for fear of losing clients. “Buyers do not have to worry about a huge spike in prices, and suppliers are more willing to negotiate a lower price over a multiyear contract knowing that prices will not jump significantly during the time frame,” adds Newsom.
However, buyer power is hampered by the rising prices for taxation law services. The average hourly fee has risen over the past three years and is forecast to continue rising over the three years to 2016. Demand for tax lawyers has been growing over the past three years due to the rebounding economy boosting the number of businesses. Additionally, the increasing number of initial public offerings (IPOs) has been bolstering demand for taxation law services; businesses have tax lawyers review the effect of the IPO on the business’s taxes. This trend is expected to continue as the economy continues to recover. For more information, visit IBISWorld’s Taxation Law Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of taxation law services. Tax law deals with public authorities’ (i.e. the government) right to impose taxes on taxpayers and require them to pay a portion of their income or property to the authority.
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
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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.