The price of security system installation is forecast to continue rising during the three years to 2017 as the cost of production increases and demand continues to rise
Los Angeles, CA (PRWEB) January 16, 2015
Security system installation services have a buyer power score of 3.1 out of 5, indicating that buyers have slightly more leverage when negotiating with suppliers. Installation prices have been rising in line with growing demand, which has stemmed from increased construction and business activity. Fortunately, buyers have benefited from low market share concentration, high competition and low service specialization. Low market share concentration indicates that no one supplier controls the market. Even large firms with multiple service lines do not have large shares of market revenue. “Low market share concentration, which is the result of the market's low barriers to entry, has boosted competition and provided buyers with more suppliers to choose from,” says IBISWorld procurement analyst Jordan Weinstein. “In addition, low service specialization has made it easier for buyers to compare offerings because the installation process is relatively similar across different suppliers.”
Moderate switching costs, high total costs of ownership and the limited range of practical substitutes for security system installation services are detrimental to buyer power. If the buyer switches installers, a new installer may require the buyer to purchase that supplier's security system. “The buyer must also consider the high operating and maintenance costs and regular subscription fees that accompany services because such costs may drastically increase total costs in the long run,” adds Weinstein. “Furthermore, although there are some substitutes available, buyers must assess whether they can realistically replace installation services.”
Buyers are advised to make purchases now to avoid higher service prices in the future. Buyers may bundle related services, such as maintenance and monitoring services, together to negotiate lower prices; however some installers will not provide these services unless a multiyear service plan is used. Buyers should ensure any contracts they agree to have termination clauses to avoid cancelation fees for terminating a contract prior to its expiration. For more information, visit IBISWorld’s Security System Installation 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 security system installation services. Vendors install a range of security systems, including burglar alarms and locking devices. Vendors also provide repair and monitoring services for existing systems. The market is composed of subcontractors, locksmiths that specialize in security systems and public and private companies. This report does not include fire alarm installation or lock and security hardware.
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.