The average price for sign installation is expected to continue rising in the three years to 2017 as demand continues to increase.
Los Angeles, CA (PRWEB) March 04, 2015
Sign installation services have a buyer power score of 3.6 out of 5. This score reflects a buyer's moderate ability to negotiate lower pricing due to the large number of suppliers, low switching costs and the price-competitive nature of the sign installation market. “IBISWorld estimates that there are over 4,000 vendors, which provides buyers with a substantial number of suppliers to choose from, although recent demand growth has marginally reduced buyer negotiating power,” says IBISWorld procurement analyst Kiera Outlaw.
In the three years to 2014, the average price of sign installation services has been increasing due to a rise in demand stemming from the economic recovery. Rising consumer spending has ignited healthy growth in corporate profit levels, the number of businesses in the United States and total advertising expenditure. Growth in these demand factors has consequently boosted demand for sign installation services. “Suppliers are also expected to experience higher costs for key inputs, such as wages and purchases, over three years to 2017,” adds Outlaw. “As a result, sign installation prices will increase slightly as suppliers pass on a portion of these costs to buyers.”
Fortunately for buyers, the rise in supplier wage and purchase expenses, and increasing demand for sign installation over the next three years will not lead to significant price increases in the next three years. Due to the high competition in the market, suppliers face strong pricing pressure; suppliers that drastically raise prices will lose business to vendors offering the same standardized service at a lower price.
Buyers benefit from the low market share concentration and high competition among suppliers. The large number of suppliers and low switching costs strengthen competition. In addition, because there is a low degree of specialization, buyers benefit from having a wide variety of suppliers capable of satisfying specific buyer requirements. These favorable conditions are expected to remain unchanged over the next three years. For more information, visit IBISWorld’s Sign Installation procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of sign installation services. Suppliers set up and install signs, typically storefront signs, displays and other signage, in business environments. This report excludes signage purchases and store fixture installation.
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.