The average price for graphic design services is forecast to continue rising as the economy recovers and demand continues to rise.
Los Angeles, CA (PRWEB) August 07, 2014
Graphic design services have a buyer power score of 3.6 out of 5. This score reflects a buyer's moderate ability to negotiate lower pricing due to the large number of suppliers, the product's widespread availability and the price-competitive nature of the market. IBISWorld estimates that there are more than 83,000 vendors, which provides buyers with a substantial number of options. “However, recent demand growth and rising supplier wage costs have marginally reduced buyer negotiating power,” according to IBISWorld business research analyst Pierre Dessertenne.
Businesses in a variety of sectors use graphic designer services. In the three years to 2014, the average price for graphic design services has grown slightly as growth in consumer spending, advertising expenditure and e-commerce sales have boosted demand for graphic design services. Rising consumer spending has helped increase demand for fast-moving consumer goods and products that are sold quickly at a relatively low cost. These products often require graphic designers to create graphics for the packaging, thus boosting demand for service providers. In addition, e-commerce sales have also grown during the past decade. This rise in e-commerce has further boosted demand for graphic design services because many e-retailers rely on graphic designers for company logos, website design and other corporate materials, which will ultimately drive prices up. Suppliers are also expected to experience a rise in wage costs over the next three years, though wages as a share of revenue will remain stable. “As wages increase, suppliers will pass off a portion of the increased costs onto buyers in the form of higher prices for graphic design services,” says Dessertenne.
Fortunately for buyers, low market share concentration and high level of competition among providers aid buyer power and mitigate the negative effects of substantial price growth. Competition is magnified due to the large number of service providers. In addition, the growing number of freelance graphic designers will continue to provide a wide variety of suppliers capable of satisfying specific buyer requirements. These conditions are favorable for buyers and are expected to remain unchanged in the next three years. Major vendors include AKQA, Chermayeff & Geismar & Haviv, Johannes Leonardo and Landor Associates. For more information, visit IBISWorld’s Graphic Design 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 design services. Service providers plan, design and manage visual communication materials, such as printed materials, packaging and corporate identification.
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.