During the next three years, the price of ice makers is forecast to increase further due to continued demand increases and rising freight and labor costs.
Los Angeles, CA (PRWEB) August 08, 2014
Ice makers have a buyer power score of 3.0 out of 5. The score indicates that neither buyers nor suppliers have a distinct advantage with regard to price negotiations. Suppliers have been raising the price of ice makers over the three years to 2014, in part due to rising market share concentration and transportation costs. Still, buyers benefit from a low level of product specialization and low switching costs. “The price of ice makers is expected to increase at a moderate rate during the three years to 2014 as the economy continues to recover from the effects of the recession,” says IBISWorld procurement analyst Jeffrey Cohen. “Following the recession, demand among key buyers increased because consumers started spending more money at establishments that use ice makers.” As demand increased, suppliers responded by raising prices to expand profit margins.
During the past three years, a variety of problems have negatively affected suppliers and buyers alike. Freight costs and the price of gasoline increased and suppliers passed some of these costs on to buyers by increasing the overall price of ice makers. Additionally, as increased transportation costs threatened to cut into suppliers' profit margins, suppliers became less willing to negotiate lower prices with buyers, hurting buyer power. “Another factor that hurt buyer power over the past three years was rising market share concentration among the top four suppliers,” adds Cohen. “As this occurred, suppliers faced less pressure to lower ice maker prices, which reduced the ability of buyers to negotiate prices.”
Despite these strains on buyer power, ice makers are homogenized products, which allows buyers to readily compare the prices and offerings of various vendors. Because there are several suppliers of ice makers throughout the retail, wholesale and manufacturing channels, buyers also have a wide selection of suppliers to choose from. In addition, switching suppliers is relatively easy for buyers because of the standardized nature of ice makers. Therefore, buyers are unlikely to lose features or functionality when switching to a new supplier. For more information, visit IBISWorld’s Ice Makers procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of ice makers. Suppliers provide a variety of commercial ice making machines, such as ice cube, ice nugget and ice flake makers. This report excludes industrial freezers, refrigerators and household appliances.
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.