Commodity Price Forecasting Services Procurement Category Market Research Report from IBISWorld Has Been Updated
Los Angeles, CA (PRWEB) March 07, 2015 -- The commodity price forecasting service market has a buyer power score of 3.9 out of 5, which means that this market is generally favorable for buyers. Buyers benefit from the market's high level of competition and price trends in addition to the moderate availability of substitutes. “The market's value-based pricing model and moderate specialization are, however, slightly negative for buyers,” says IBISWorld procurement analyst Hayden Shipp.
The market is highly fragmented, and the average buyer has many suppliers to choose from. As a result, suppliers must compete heavily on the basis of price and quality. In addition, there are alternatives for this market's services, namely in-house forecasting and forecasts that are available for free. While these are not perfect substitutes for outsourced commodity price forecasting services, they help keep prices in this market competitive. “Low switching costs also help drive competition because buyers can quickly and easily find new suppliers,” adds Shipp. “Despite strong competition, the average vendor is financially stable, which gives buyers an additional advantage because they do not need to worry about a supplier going under during the term of a service contract.”
Price growth has been relatively low during the past three years. Increased corporate profit, which has been the primary driver of demand, has enabled more businesses to invest in forecasting services. However, demand and price growth have been kept relatively low by the increased stability of commodity markets. Price growth will remain limited during the next three years as interest rates begin to rise and drive demand away from commodities and toward more secure bonds. Because price growth in this market is below the rate of inflation, buyers benefit from a general increase in their purchasing power.
Factors that detract from buyer power include moderate specialization and the market's pricing model. Moderate specialization means that not all suppliers are comparable, which can complicate the buyer's evaluation process. Additionally, because suppliers use a value-based pricing model to price their goods, buyers' ability to negotiate price below the quoted rate is limited. For more information, visit IBISWorld’s Commodity Price Forecasting Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of commodity price forecasting services. Suppliers are market research or consulting firms that produce statements on the price of commodities based on multiple variables, including macroeconomic factors and other available statistics. Buyers of commodity price forecasting services include commodity producers, commodity trading firms, government agencies and companies that purchase commodities as inputs.
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.
Gavin Smith, IBISWorld Inc., +1 (310) 866-5042, [email protected]
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