Los Angeles, CA (PRWEB) April 27, 2014 -- Walk-in refrigerators have a buyer power score of 3.2 out of 5, demonstrating a moderate level of buyer power. "Buyers in this market gain negotiation power through the product's low price volatility, fragmented market and low switching costs," according to IBISWorld procurement analyst Lauren Setar. The low market share concentration among suppliers supports buyer power. Because there are many suppliers in the market, buyers can easily get bids from many suppliers to weigh their walk-in refrigerator options. In addition, a fragmented market causes suppliers to lower prices due to the competitive landscape, which is beneficial for buyers and allows for greater purchasing power.
Buyers are also able to easily switch from one supplier to another. "Because walk-in refrigerators are typically purchased as single items, there are few restrictions preventing buyers from switching suppliers," says Setar. As a result, buyers gain negotiating power. Major suppliers include Hussmann Corporation, Kool Star, Arnold Refrigeration Inc. and Kolpak.
However, buyers lose some negotiation power through supply chain risks. Walk-in refrigerator suppliers are dependent on raw material inputs, such as steel and aluminum. These commodities experience high price volatility, forcing suppliers to either raise costs for buyers or restrict profit margins, both of which are factors that limit buyer negotiation power.
Additionally, there are few substitutes for walk-in refrigerators, which reduces buyer power. Walk-in refrigerators are used in a variety of markets, particularly in food service settings, and must keep food items below a specified temperature in accordance to the proper regulatory body's requirements. Suppliers may use alternatives like do-it-yourself refrigerators, used walk-in refrigerators and refrigerated storage services; however, these options may not be a direct substitute for buyers. As a result, there are few substitute goods, restricting buyer purchasing power.
For more information, visit IBISWorld’s Walk-In Refrigerators 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 walk-in refrigerators. These refrigerators may be used indoors or outdoors and are large enough for a person to walk into. These units are designed to easily store a greater number of products in a more organized manner than residential refrigerators. Walk-in refrigerators have powerful cooling systems, which rarely allow the internal temperature to fluctuate. This does not include the refrigeration unit used in walk-in refrigerator production as a standalone product, used walk-in refrigerators, combined refrigerator freezers, liquid nitrogen refrigerators, blast chillers or refrigerated tanks.
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.
Gavin Smith, IBISWorld Inc., +1 (310) 866-5042, [email protected]