Price has increased over the past three years due to the slowly recovering economy following the recession limiting the demand for discretionary items
Los Angeles, CA (PRWEB) April 03, 2014
Buyers of graphic display services have a buyer power score of 3.8 out of 5. Scores closer to 5 represent stronger negotiating conditions for buyers. “This service's strong score reflects a buyer's ability to negotiate lower prices, due largely to the high competition among the large number of suppliers in this market, and overall market conditions,” says IBISWorld procurement analyst Jordan Weinstein. However, following the economic crisis, prices have begun to rebound and will soon reach prerecessionary levels, which poses a threat to the buyer power.
The slight price growth is largely due to the economic recovery, which drives corporate profit, the number of businesses in function, and the number of households earning more than $100,000. “As the economy continues to grow, businesses and consumers will spend more on graphic display solutions, which promote both demand and revenue for the graphic display services market,” says Weinstein.
Fortunately for buyers, the increases of external drivers, such as corporate profit and number of businesses, have not resulted in volatile price increases. Many suppliers faced great losses following the recession and have been forced to lower the price of their service to compete with other suppliers. The subdued growth due to the slow economic recovery has not yet increased price to the prerecessionary benchmark, but is projected to surpass it in the three years to 2016.
Nonetheless, buyer power remains significant because of the low market concentration and high level of competition among graphic display services. The large number of suppliers provides buyers with a wide variety of capable suppliers to choose. Major suppliers include Michaels Stores Inc., Aaron Brothers Inc., Jo-Ann Stores Inc., Hobby Lobby Stores Inc. and A.C. Moore. Despite varying levels of specialization or customization, suppliers are forced to compete with lower prices. However, the level of specialization and complexity greatly affects buying power; buyers in need of highly customized and intricate graphic display solutions that require high quality materials and skilled workers can anticipate having lower buying power than those who require a more standardized, ready-made solution. Overall, the slow recovery of the economy has allowed buying power for all types of graphic display services to remain relatively strong.
For more information, visit IBISWorld’s Graphic Display Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of graphic display services. Graphic display services include photographic or picture mounting and framing as well as article display arrangements. This report does not include graphic design services such as layout or graphic editing, photocomposition, package design or silk-screen design.
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
Market Profitability
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.