Low input costs will keep prices from spiking, although prices are projected to continue to rise as more businesses and construction require vaults or safes and create more demand for installation services
Los Angeles, CA (PRWEB) December 31, 2014
Buyers of safe and vault installation services have a buyer power score of 3.1 out of 5, which indicates that buyers have a slight advantage over suppliers during the purchasing process. According to IBISWorld analyst Kiera Outlaw, buyers benefit from low market share concentration, low service specialization and minimal switching costs. However, rising prices and few substitutes reduce buyer power.
Safe and vault sales heavily influence demand for services. As more safes and vaults are purchased, more buyers demand installation services. The number of banks has dropped during the period, thereby reducing the number of safe or vault installations that banks need; however, continues Outlaw, the number of businesses, higher construction rates and greater levels of corporate profit have contributed to higher demand for services and pushed prices up.
Buyers benefit significantly from low market share concentration. Because no single supplier controls the market, buyers can pit multiple suppliers against one another during the purchasing process. Additionally, many suppliers are willing to travel outside their regions to provide services. This increases the number of suppliers from which to select, although buyers should question how travel costs and service prices are impacted.
Buyers also benefit from a low level of service specialization. Although installation processes vary, such as installing a vault door versus installing a safe into the floor, there is little customization between installation plans. In addition, minimal switching costs improve buyer power because buyers do not need to use the same supplier for their future installation needs. However, if they do commit to a contract for multiple installations for a period of time, the buyer should include a termination clause to avoid any additional risk.
Though buyers can install safes or vaults using an in-house team, they have few other viable substitute service options from which to choose. As a result, buyers are pressured to pay market prices. From 2011 to 2014, prices have risen steadily and are projected to continue growing during the next three years. Therefore, buyers should consider procuring services now before prices continue to rise. For more information, visit IBISWorld’s Safe & Vault Installation procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of safe and vault installation services. In addition to installation services, vendors generally sell safes and vaults and offer other related services such as repair and maintenance services. Safes and vaults are used to store valuables, but vaults are larger than safes and more likely to be built into walls. This report excludes the purchase of a safe or vault, as well as lock installation services.
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.