Demand is expected to continue driving price growth during the three years to 2017; however, a rising prime rate and continued declines in business bankruptcies will slow price growth.
Los Angeles, CA (PRWEB) December 17, 2014
Business credit reporting services have a buyer power score of 3.2 out of 5, which reflects a moderate level of buyer power. Demand for business credit reporting services has been steady during the past three years because companies have continued to rely on vendors to accumulate and provide access to critical business information and credit risk factors. The ongoing need to evaluate business credit, as well as a growing number of businesses in the United States and a flat prime rate, has been causing service prices to rise. Prices are expected to rise further in the three years to 2017, albeit at a slower rate. “Although buyers do not benefit from rising service prices, there has been a low level of price volatility within the market, which reduces the risk of sudden price shocks and allows buyers to make more accurate cost estimations,” says IBISWorld procurement analyst Ian Buchanan.
The business credit reporting market is moderately concentrated, and some of the largest vendors maintain significant influence due to their established brand names and massive data networks. Major consumer credit reporting firms have also started to produce business credit reports to expand their service portfolios. “Fortunately for buyers, the growing adoption of web-based tools has made it easier for other vendors to enter the market, consequently increasing the presence of price-based competition,” adds Buchanan. “Additionally, supplier profitability is high in this market, which gives buyers the opportunity to leverage competition to negotiate prices down, particularly when purchasing multiple services from a single supplier.”
Although buyers benefit from low price volatility and gradually intensifying price-based competition, a lack of substitute services moderate buyer power. Buyers can bring these operations in-house, but this method is not practical for most buyers because it requires knowledgeable employees that can analyze and interpret data accurately. Hiring permanent staff that meets these requirements can be costly. As such, suppliers gain pricing leverage because buyers have few other service options from which to choose. For more information, visit IBISWorld’s Business Credit Reporting Services 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 business credit reporting services. Vendors in this market provide objective reports that outline critical information buyers can use to make informed business decisions. Credit reports can include a firm’s corporate registration and contact information, purchase history, key personnel, past bankruptcy filings and other relevant risk factors. Buyers can purchase business credit reporting services to determine their own financial standing or to evaluate the credit conditions of other businesses. Vendors offer risk management and fraud prevention in addition to credit reporting. This report excludes consumer credit reporting services and credit rating services that evaluate debt securities within public markets.
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.