Rebate Management Services Procurement Category Market Research Report from IBISWorld has Been Updated

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Rebate management services have a buyer power score of 4.1 out of 5, signifying a high degree of buyer negotiating power due to the wide availability of substitute services and low specialization, among other factors. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has updated a report on the procurement of Rebate Management Services in its growing collection of procurement category market research reports.

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Rebate management service prices rose at a slow rate in the three years to 2014 as demand for the services wound down following the boom in demand during the recession

Rebate management services have a buyer power score of 4.1 out of 5, signifying a high degree of buyer negotiating power. As a market currently in decline, many factors help buyers to leverage better deals when purchasing rebate management services. Most notably, these factors include flat, stable price trends, a wide availability of substitutes and little specialization within the service.

Rebate management services run countercyclical to the overall economy. Accordingly, service prices rose during the recessionary period as a result of increased demand for low-cost promotion strategies. Buyers purchased rebate services to help drive sales during an otherwise stagnant period in retail. As the economy has recovered, this trend has reversed. “In response to higher levels of corporate profit and larger advertising budgets, buyer demand has shifted toward higher-cost mass media advertising strategies in the three years to 2014. Falling demand is anticipated to continue through 2017, preventing significant price growth and benefiting buyers,” according to IBISWorld business research analyst Michelle Hovanetz.

The plethora of advertising alternatives available to buyers is perhaps the greatest source of leverage in negotiations. The existence of substitutes in the form of mass media advertisements, traditional sales and deal-of-the-day promotions, among others, provides buyers with many advertising opportunities beyond rebate promotions. Additionally, buyers have the option of implementing rebate programs in-house. The wide availability of substitutes has led to falling demand in recent years, thereby encouraging suppliers to negotiate with buyers to maintain revenue streams.

Lastly, buyers benefit from little specialization in the market. Suppliers of all sizes provide essentially the same services, albeit on different scales. Among the largest suppliers in the market are Young America, Parago and KBM. “Once the necessary supplier size and capacity is determined, buyers have little trouble finding suitable suppliers. The standardization among vendors allows for low switching costs because buyers can freely move from supplier to supplier with little risk of missing out on valuable expertise,” Hovanetz says. For more information, visit IBISWorld’s Rebate Management Services procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of rebate management services. Rebates reward businesses and customers for using specific products and brands by providing them with money back on a purchase. Rebate management service providers assist clients throughout the rebate process and typically review and process scanned, handwritten or online rebates. In addition, many services help clients understand the laws surrounding uncashed rebate checks and handle rebate validation, fraud mitigation and reward distribution. This report excludes other sales and business promotion activities, such as coupon publishing, merchandising, promotional program management and advertising management services. This report also excludes rebate management software.

Executive Summary
Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast
Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Regulation
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Imports
Competitive Environment
Market Share Concentration
Market Profitability
Switching Costs
Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements
Negotiation Questions
Buyer Power Factors
Key Statistics

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.

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Gavin Smith
IBISWorld Inc.
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