Portable generator prices will continue to rise at a mild rate in line with demand
Los Angeles, CA (PRWEB) December 02, 2014
Portable generators have a buyer power score of 3.3 out of 5, reflecting moderate buyer power. Buyer power is bolstered by low recent price growth and low price volatility. These price trends are expected to persist during the next three years, which will reduce the penalties associated with delaying a purchase until needs or budgets expand.
The vendor structure for this market has mixed effects on buyer power. Vendor profit margins generally rise alongside growth in demand for building materials and equipment for contractors. This trend has improved the financial health of vendors and their willingness to offer discounts. For example, nearly all vendors offer significant bulk discounts. Due to portable generators' restrained price growth, buyers can benefit from waiting to act until a bulk purchase is needed. Also, vendors compete across their different segments, which include retail, wholesale and vehicle dealers. Still, the high market share held by dominant retailers constrains buyers' choices. Major retailers possess vast purchasing power, and other vendors strive to match their prices. Current market vendors include Walmart Stores Inc., Amazon.com, Home Depot Inc., Honda and Lowes Companies Inc.
While price variation is limited across vendors, prices vary significantly across generator models, enabling buyers to choose machines that fit their needs and budget. Portable generators are offered in a range of fuel types, including diesel and alternative fuels. These options boost up-front the price but reduce the total cost of ownership. Also, buyers with limited and nonrecurring portable generator needs can take advantage of rental costs that are quite low, making the rental option a viable substitute for many buyers and enhancing their negotiating power. For more information, visit IBISWorld’s Portable Generators procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of portable generators. Portable generators supply electricity temporarily at jobsites, campsites or homes. These devices usually run off gasoline; however, natural gas, propane and diesel versions are also available. Portable generators may be conventional models or they may be inverter generators. Inverter generators were introduced in the early 2000s and are smaller, lighter, quieter and more fuel efficient than conventional models. They are also more expensive to purchase.
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.