Computer Hardware Rental Procurement Category Market Research Report from IBISWorld has Been Updated

The large number of suppliers in the computer hardware rental market gives buyers significant negotiating power, because it allows them to compare different suppliers; manufacturers are able to offer substantial quantity discounts, although smaller buyers may not have access to rent directly from the manufacturer due to minimum rental requirements. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has updated a report on the procurement of Computer Hardware Rental in its growing collection of procurement category market research reports.

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IBISWorld industry market research
Declines in price will be mitigated by growing demand and rising private investment in computers and software

Los Angeles, CA (PRWEB) June 16, 2014

Computer hardware rental services have a buyer power score of 4.6 out of 5, indicating high negotiating power for buyers. This score reflects a steady decline in rental fees, the availability of a wide variety of suppliers, and the declining cost of computers and relevant input costs. Input costs for suppliers have declined at a steady rate over the past three years. Buyers also benefit because they are purchasing from a source with a low risk of default or bankruptcy. “Alternatively, factors that decrease buyer power include moderate switching costs and growing demand for the service, which has offset a strong decline in prices,” says IBISWorld business research analyst Andrew Krabeepetcharat.

The large number of suppliers in the market gives buyers significant negotiating power, because it allows them to compare different suppliers. Manufacturers are able to offer substantial quantity discounts, although smaller buyers may not have access to rent directly from the manufacturer due to minimum rental requirements. Retailers are able to offer more one-on-one customer service, a shorter buying lead time and no minimum renting requirements, typically in exchange for slightly higher prices. With a high number of vendors to choose from, buyers are better able to negotiate with suppliers on price. “Also, buyers with a range of computer rental requirements will be able to find a vendor that can provide them with appropriate rental services,” says Krabeepetcharat.

Buyer negotiating power is limited by a moderate level of switching costs, though, as rental contracts generally lock in agreements between one and five years. Also, rental contracts are difficult and costly to terminate after signing. Installation and setup fees also make it difficult for buyers to switch to another vendor after a rental contract has been agreed on. Consequently, although buyer negotiating power is high, buyers should take time to carefully evaluate their needs and resources before entering into a contract. Major vendors include Apple Inc., CDW, Dell and Hewlett-Packard Development Company LP. For more information, visit IBISWorld’s Computer Hardware Rental procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of computer hardware rental. Computer hardware rental companies allow businesses to rent computers and relevant peripherals, and requires a fee based on the value of the computer hardware rented. Suppliers include manufacturers, retailers and third party suppliers. This report does not cover the rental of servers.
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.


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