Rental prices have fallen due to the declining price of technology and hardware
Los Angeles, CA (PRWEB) April 25, 2015
Computer hardware rental services have a buyer power score of 4.5 out of 5, indicating high negotiating power for buyers. “This score reflects a steady decline in rental fees due to the wide availability of suppliers and the declining cost of inputs,” says IBISWorld research analyst Andrew Krabeepetcharat. “Input costs for suppliers have declined at a steady rate over the past three years.” Additionally, the low level of price volatility benefits buyers because it creates a more predictable purchasing environment and reduces the likelihood of price hikes. Stable price declines during the period allow buyers to take the time to carefully evaluate suppliers and their options.
Furthermore, buyers benefit from the low level of supply chain risk in the market. Suppliers are able to source their computer hardware from a variety of sources and face low risk of discontinuity. Suppliers also have a low level of risk from downstream demand because all types of businesses use computer hardware rental services. According to Krabeepetcharat, “The wide range of clients for suppliers reduces the bankruptcy risk of suppliers and creates a more stable purchasing environment.” Major suppliers of computer hardware rental services include Apple Inc., CDW, Dell Hewlett-Packard, IBM, Staples and Office Depot.
However, buyer negotiating power is limited by a moderate level of switching costs because rental contracts generally lock in agreements for one to five years. Also, rental contracts are difficult and costly to terminate after signing. Installation and setup fees also make it difficult for buyers to switch to another vendor after a rental contract has been agreed on. Consequently, although buyer negotiating power is high, buyers should take time to carefully evaluate their needs and resources before entering into a contract. For more information, visit IBISWorld’s Computer Hardware Rental Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of computer hardware rental. Computer hardware rental companies allow businesses to rent computer hardware for a fee based on the value of the equipment rented. Suppliers include manufacturers, retailers and third-party suppliers. This report does not cover the rental of computer peripherals.
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.