Mailing software prices are forecast to rise slightly during the three years to 2018 due to growing demand, but they are kept in check by high levels of competition and declining input costs.
Los Angeles, CA (PRWEB) March 17, 2015
The mailing software market exhibits a buyer power score of 3.6 out of 5, reflecting strong negotiation power for buyers. “Buyers benefit from market fragmentation and limited price growth during the current and forecast periods, although moderate switching costs and the limited availability of substitutes dampen buyer power to an extent,” says IBISWorld procurement analyst Cameron Roark.
Low market share concentration fosters intense price competition among mailing software suppliers. Additionally, there are certifications, such as Presort Accuracy, Validation and Evaluation (PAVE) and Code Accuracy Support System (CASS), that assist buyers in the selection process. “Vendors with these certifications offer up-to-date addresses to ensure proper delivery of mail,” adds Roark. “Most mailing software vendors compete for market share through features and pricing.”
Still, moderate switching costs indicate that changing vendors can be costly. Buyers need to ensure that they are making an informed selection regarding a supplier to stay on schedule and avoid unnecessary expenses. Additionally, there are few substitutes in the market that can replace the functionality of mailing software. A limited number of substitutes hinders buyer negotiation power because buyers cannot use the leverage of cheaper alternatives to gain more favorable pricing.
While rising demand has driven sales growth and placed upward pressure on prices during the three years to 2015, falling input costs and intense competition have mitigated this growth. Buyers benefit from limited price growth because it increases their purchasing power and provides them with the flexibility to purchase software on an ad hoc basis. For more information, visit IBISWorld’s Mailing Software 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 mailing software. Mailing software organizes and streamlines the mailing process to decrease operational costs. These processes include enhancing address accuracy, decreasing undeliverable mail and providing potential postal discounts. Mailing software offers an easy-to-use interface and provides additional options for maintenance. Furthermore, the software enables users to print US Postal Service stamps and includes other features, such as envelope or label customization and package tracking. This report does not include shipping software, postage machines or expense software.
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.