Prices have risen gradually due to increasing corporate profit, the number of businesses nationwide and the percentage of services conducted online boosting demand
Los Angeles, CA (PRWEB) September 25, 2014
The buyer power score for audio visual equipment rental is 2.9 out of 5, reflecting a medium level of buyer power. Buyers benefit from low price volatility, which protects them against strong fluctuations in price. According to IBISWorld analyst Pierre Dessertenne, although there are a high number of suppliers in the market, buyers' choice of suppliers is limited because audio visual equipment rental is a heavily localized service. Additionally, suppliers specialize in providing equipment rentals to particular facilities or localities, limiting a buyer's ability to choose a supplier best suited to their needs.
The lack of reasonable substitutes to audio visual equipment rental also negatively impacts buyer power. Unless a buyer owns audio visual equipment, there is no other alternative way to achieve the results of using audio visual equipment. While it is possible for buyers to purchase their own equipment and bring it to the facility, this is often impractical, continues Dessertenne. An average buyer, such as a business hosting an annual conference, would not use the equipment often enough to recoup the purchase price of the product. Additionally, it would be costly to transport heavy and bulky audio visual equipment from event to event, store the equipment and keep staff on payroll to set up and use the equipment. Buyers are advised to source their audio visual equipment from a supplier located close to the venue.
Buyers benefit primarily from low price volatility, which is the result of low volatility among demand drivers for the service, including the number of US businesses and corporate profit. Because demand changes gradually, prices function similarly as most suppliers price their rentals based on market conditions. Low volatility improves buyer power because it protects buyers from facing strong fluctuations in price. Although prices are rising, they are increasing gradually and predictably, allowing buyers to accurately plan and budget for their rental purchases. Overall, low price volatility balances against medium product specialization and the low availability of substitutes to give buyers a moderate level of power in the market. For more information, visit IBISWorld’s Audio Visual Equipment Rental 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 audio visual equipment rental. Suppliers rent out audio visual equipment to buyers for a predetermined duration. Rented equipment includes projectors, speakers, backdrops, monitors, lighting and more. This report will cover procuring audio visual equipment rentals for use at a conference, presentation, trade show or similar event. Audio visual equipment rental for the purpose of motion picture production is not included.
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.