Prices are forecast to increase marginally in the next three years due to suppliers' input costs stabilizing and security service companies focusing on other aspects of their business, limiting growth in money transport services.
Los Angeles, CA (PRWEB) March 28, 2014
Money transport services have a buyer power score of 3.7 out of 5, indicating moderately good negotiating conditions for buyers. There is low market share concentration among suppliers in the market, giving buyers leverage during the bidding process as the large pool of suppliers compete with one another. Additionally, switching costs are low in this market. Nonetheless, some factors work against buyers. There are no real substitutes for these services, which are highly specialized. “Suppliers also incur large initial costs associated with purchasing the armored vehicles required to safely transport large quantities of cash and valuable items,” says IBISWorld procurement analyst Daniel Krohn. “Some of these costs could be passed on to buyers in the form of price increases.”
Price volatility has stayed moderate, somewhat limiting the risk of sudden price shocks and offering buyers some ability to anticipate costs. “Price volatility is expected to decrease over the three years to 2016, aiding buyers by allowing them time to find the most suitable money transport service supplier with minimal pressure to purchase the services immediately,” adds Krohn.
Even though prices are forecast to increase only slightly in the next three years, buyers should consider entering into long-term contracts. While this will make it more difficult for buyers to switch suppliers, suppliers will be more willing to negotiate favorable terms, as they will be able to count on steady income. For more information, visit IBISWorld’s Money Transport Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to help buyers of money transport services. Money transport services involve the secure transportation of money and valuable items to customer-determined destinations. These services typically provide buyers with an armored vehicle manned by trained security personnel. This report excludes security services not involving the transport of money, security system design and armored car retail.
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.