From 2014 to 2017, party supply rental prices are forecast to rise further due to continued increases in per capita disposable income, corporate profit and the number of businesses
Los Angeles, CA (PRWEB) July 13, 2014
Low market share concentration, low price volatility, low product specialization and a low availability of substitutes characterize the market for party supply rental services. These factors, along with others, cultivate a moderate level of buyer power in the market; specifically, the buyer power score is 3.3 out of 5. “This level of buyer power indicates that buyers and suppliers having an equal amount of leverage during negotiations,” says IBISWorld procurement analyst Kayley Freshman-Caffrey.
The only alternative for buyers seeking party supply rental is to purchase their own party supplies. “Purchasing party supplies involves a high initial cost and requires storing the purchased items, making the option unviable for most buyers,” adds Freshman-Caffrey. “Thus, buyers have little choice but to rent their needed supplies from an outside firm.” This low availability of substitutes limits the extent to which alternative service offerings erode the prices of rentals.
On the other hand, low product specialization allows buyers to source their party supply rentals from a multitude of suppliers. Because product portfolios are relatively standardized, buyers do not need to seek a niche provider for their rental order.
Low market share concentration further expands the array of suppliers available to buyers by preventing the top providers from dominating the market. This expansive selection of suppliers nurtures intense market competition, which benefits buyers by pressuring suppliers to keep their prices within market norms. As a result, rental rates fluctuate infrequently, reducing the extent to which buyers must be wary of price spikes. Low price driver volatility reinforces this low price volatility by eliminating the need for suppliers to respond to sudden jumps or drops in input costs or demand. Low price driver volatility allows buyers to more accurately budget for their rental order without worrying that the average price of their rented items will change after their order has been placed. Overall, the positive effects of low price volatility, low market concentration and low product specialization balance the negative impacts of a low availability of substitutes to give buyers a moderate level of negotiation power. For more information, visit IBISWorld’s Party Supply Rental procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of party supply rentals. Rentable party supplies include chairs, tables, linens, tents, dishware and silverware, among others. These items are rented for events such as corporate gatherings, trade shows, festivals, weddings and parties. This report does not cover audiovisual equipment rentals, meeting facilities rentals or party and event planning services.
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.