The price of electrical frequency meters is forecast to increase further due to continued rising demand and higher input prices
Los Angeles, CA (PRWEB) November 08, 2014
Electrical frequency meters have a buyer power score of 3.3 out of 5. This score indicates that neither buyers nor suppliers have a distinct advantage with regard to negotiating prices. Suppliers have been raising the price of electrical frequency meters during the three years to 2014, largely due to rising demand. “Still, buyers benefit from low market share concentration, low product specialization and low switching costs,” according to IBISWorld business research analyst Jeffrey Cohen.
During the past three years, transportation costs have negatively affected suppliers and buyers alike. Specifically, freight costs and the price of gasoline increased, and suppliers passed some of these costs on to buyers by increasing the overall price of electrical frequency meters. Additionally, as increasing transportation costs cut into suppliers' profit margins, suppliers have become less willing to negotiate lower prices with buyers, hurting buyer power. Another factor that has harmed buyer power is high price driver volatility. “A high level of price driver volatility leads to more difficulty on the buyer's behalf when budgeting for purchases,” says Cohen.
Despite these strains on buyer power, electrical frequency meters are largely standardized products, which allows buyers to readily compare the prices and offerings of various vendors. Because there are several suppliers of electrical frequency meters across the United States and throughout the wholesale and manufacturing channels, buyers also have a wide selection of suppliers to choose from. Therefore, the highly fragmented nature of the market positively affects buyer negotiating power. Lastly, switching costs are low in the market. Due to homogeneity across product lines, many suppliers are capable of providing products of similar quality, thereby making suppliers more willing to negotiate on price to prevent buyers from switching. Major vendors include Agilent Technologies Inc., Danaher Corporation and W.W. Grainger Inc. For more information, visit IBISWorld’s Electrical Frequency Meters procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of electrical frequency meters. An electrical frequency meter is an electronic instrument that is designed to measure the frequency of an alternating current (radio wave) and display the results in either hertz, kilohertz or megahertz. Electrical frequency meters are most commonly used in laboratories, manufacturing industries and utility companies. This report excludes electricity meters, smart meters, and search and detection instruments.
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
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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.