Intercom Systems Procurement Category Market Research Report from IBISWorld has Been Updated

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The increased rate of technological advancement and rising demand for newer products have limited buyer power in the intercom system market, but buyers have benefited from the market's low level of concentration, which guarantees that buyers have a wide pool of suppliers that offer competetive pricing from which to choose. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has updated a report on the procurement of Intercom Systems in its growing collection of procurement category market research reports.

IBISWorld industry market research
As construction and corporate profit continue to climb in the three years to 2017, more buyers will need intercom systems, which will, thus, be priced higher

Buyers of intercom systems have a buyer power score of 3.3 out of 5, which provides buyers with a moderate level of negotiation power over suppliers. IBISWorld market research analyst, Aileen Weiss, says, "The low market share concentration improves buyer power because no one supplier controls product prices, and buyers have numerous suppliers to select from when making a purchasing decision." Although there are many suppliers to choose from, buyers should evaluate potential suppliers extensively to avoid future switching costs. Major vendors in the market include Aiphone Corporation, W.W. Grainger Inc. and Central Vacuum Stores Inc.

Suppliers of intercom systems include international and domestic manufacturers, distributors and select retailers. "Imported intercom systems are common because there are many foreign firms that produce and sell the products to the United States," says Weiss. Buyers should be aware of longer shipping times and greater freight costs when purchasing an imported intercom system, especially if the product is popular and commonly out of stock.

The medium level of substitute goods provides buyers with greater negotiating power. Buyers have other product options if the intercom system does not meet the business' needs. In addition, the low product specialization makes it easier for buyers to find a supplier. The intercom systems are also relatively commoditized, resulting in more suppliers that can provide the product because it can be mass-produced within the market.

The low price volatility makes it easier for buyers to budget for future product prices. However, as intercom systems go through technological advancements and demand for newer products increases, prices will continue to rise and leave buyers with less negotiating power. Therefore, buyers should assess whether they require new products or whether they can purchase an older intercom system model for a lower price.

Overall, buyer negotiation power is positively impacted by the widespread adoption of intercom systems. Although more technologically advanced products will be available during the next three years, buyers can negotiate lower prices now on older models. To find the most favorable price, buyers should compare suppliers, inquire about discounts and bundle the purchase of related goods to ensure all products are compatible with one another. For more information, visit IBISWorld’s Intercom Systems procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of intercom systems. Intercom systems are voice communication systems used independently from the public switched telephone network. Intercom systems are typically used as entry systems in building spaces such as hospitals, schools, apartment buildings, warehouses or office buildings. Intercom systems allow for two-way communication. This report excludes other call management systems such as public announcement systems used at entertainment and sporting events. This report also excludes telecom announcers, paging systems, nurse communication modules and infant or child security transmitters. Finally, this report does not include intercom system installation services.

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
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
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 or call 1-800-330-3772.

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Gavin Smith
IBISWorld Inc.
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