Prices have continuously declined as demand for paper shredding machines has decreased due to a consumer shift in preference from print to digital products
Los Angeles, CA (PRWEB) December 07, 2014
Paper shredding machines have a power score of 4.3 out of 5, which indicates very favorable negotiating conditions for buyers. Steadily declining prices along with low specialization and a large number of suppliers have benefited buyers greatly. Prices have declined in the three years to 2014 as demand for paper shredders has waned. “The growing consumer shift in preference from print to digital products has continuously expanded as the rapid adoption of high-speed internet and smartphones has boosted the popularity of digital products and services,” according to IBISWorld business research analyst Jesse Chiang. Consequently, demand has decreased for paper shredders as consumers have had less of a need to shred sensitive paper documents. Suppliers of paper shredders have had to lower prices in an attempt to attract buyers. Still, buyer power is somewhat limited by the significant financial risk that the average supplier in the market carries.
Paper shredders typically require low specialization because these machines do not require much expertise to either manufacture or distribute. Consequently, there are more than 3,200 suppliers of paper shredding machines for buyers to choose from, including major manufacturers Fellowes and ACCO. With constantly decreasing prices, buyers can leverage this wide selection of suppliers to receive optimal service and prices. Further discounts, however, can be limited by the low market average profit margin, which limits suppliers' ability to offer discounts without significant volume or bundled goods.
Buyer power is somewhat limited by the significant level of financial risk that the average vendor in the market generates. Suppliers have been hurt financially by declining demand for paper shredders and rising input costs, which have slimmed already-low profit margins. “As such, buyers must be sure that suppliers can deliver supplies for the duration of the order or contract,” Chiang says. Sourcing from financially compromised operators can cost buyers the supply and the capital invested in the order or contract. Buyers are advised to thoroughly research suppliers before making a purchase. For more information, visit IBISWorld’s Paper Shredding Machines procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of paper shredding machines. Paper shredding machines shred materials of different volumes and thicknesses. Materials that can be shredded include paper documents, credit cards and CDs. Shredders can have a pullout compartment that can be removed to discard the shredded pieces or they can have a trash can that fits under the shredding machine. This report does not include paper-cutting machines, paper punching or binding machines, base protection boards, industrial shredders and industrial shredding trucks.
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.