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Point-of-Sale Terminals Procurement Category Market Research Report from IBISWorld Has Been Updated
  • USA - English


News provided by

IBISWorld Inc.

Sep 12, 2014, 04:00 ET

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Los Angeles, CA (PRWEB) September 12, 2014 -- Point-of-sale (POS) terminals have a buyer power score of 4.3 out of 5, indicating strong negotiating conditions for buyers. Buyers are well positioned to negotiate lower prices and package deals. According to IBISWorld analyst Andrew Yang, buyers benefit from favorable pricing trends and low market risks; however, the market's structure detracts from the buyer score.

Due to stagnant demand and falling input prices, prices have remained fairly stable in the three years to 2014

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Pricing trends are favorable for buyers. Prices for the key inputs of POS terminals (semiconductors, computer chips and microprocessors) have steadily declined, explained by a phenomenon known as Moore's Law, under which manufacturers are able to shrink down the size of these components and achieve cost savings in the process. As a result, suppliers have been able to lower their input costs and have passed on these savings to buyers in the form of lower prices, says Yang. In addition, more and more consumers are making purchases online, negating the need for POS terminals entirely and forcing supplier to further lower their prices to attract buyers. In the three years to 2014, prices have been very stable; though prices are forecast to decline in the three years to 2017.

Buyers also benefit from low market risks. Many suppliers are diversified companies with moderate profit margins and low bankruptcy risks, including Hewlett-Packard, IBM and Toshiba. Supply chain risks are also low as most suppliers are global companies with well-established supply chains. This allows these companies to procure the inputs that they need to manufacture POS terminal hardware without difficulty. As a result, buyers can expect reliable and steady access to POS terminals.

However, the market's structure significantly lowers the buyer score. Product specialization and market share concentration are high, meaning that there are a limited number of suppliers that can provide solutions for buyers. High market share concentration also lowers competition, decreasing pressure on suppliers to provide discounts. In addition, POS terminals are usually customized for each buyer and are deeply integrated with buyers' IT infrastructures, software programs and retail operations. This raises switching costs for buyers and the risk of getting locked in with a supplier. For more information, visit IBISWorld’s Point-of-Sale Terminals procurement category market research report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Like IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of point-of-sale terminals. Point-of-sale (POS) terminals are hardware and software systems used to execute and manage retail transactions. A point-of-sale terminal typically includes a cash register, a computer, a receipt printer and a credit card processor. Aside from sales, a POS terminal can also manage inventory, customer orders, promotions, discounts and gift cards. This report focuses on point-of-sale terminals in physical locations and excludes e-commerce payment systems used online.

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.

Gavin Smith, IBISWorld Inc., +1 (310) 866-5042, [email protected]

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