2 Beds – Woodside Terrace Apartments
. This apartment community has all the special touches you’re looking for in an apartment home. If you enjoy
Price: $ 789
2901 Parklane NW
44709 Canton, USA
Los Angeles, CA (PRWEB) April 24, 2014
Mailing services have a buyer power score of 4.0 out of 5, signifying a relatively high degree of buyer negotiating power. Factors aiding negotiating power include a variety of substitutes, a lack of specialization, very low switching costs, a stable supply chain and a lack of price volatility. There are some factors, however, that hamper buyer power, including rising prices, a medium level of market share concentration and a moderate degree of vendor financial risk. Prices have risen moderately over the past three years, negatively impacting buyers. “Price increases have been due to a rise in demand for mailing services stemming from increasing postage costs,” says IBISWorld procurement analyst Michelle Hovanetz. “Rising costs force businesses dependent on paper mail to seek out lower-cost alternatives.” Through their use of presorting and bundling discounts, mailing service providers are able to cut postage costs for buyers.
Service price increases are moderated, however, by some businesses’ shift to digital alternatives to paper mail, such as online account management and billing as well as e-mail marketing. “The high number of substitutes available to buyers, including the creation of an in-house mailroom, benefits buyer power,” adds Hovanetz. “Demand for mailing services is expected to continue rising at a slower rate in the coming years, contributing to slightly lower price increases through 2016.”
A lack of service specialization and low switching costs are positive for buyers, as they allow for price comparison across suppliers without regard for special capacities or high costs associated with changing vendors. However, the positive effects of these factors are somewhat limited by a medium degree of market share concentration. Areas without a large population or high business mail volume generally have fewer suppliers, limiting price-based competition. The majority of suppliers are small local companies employing less than 20 people. While many slightly larger regional suppliers exist, Pitney Bowes is the only national supplier of presorting and other mailing services.
Mailing service suppliers have a stable supply chain, making the risk of price spikes due to supply chain problems unlikely. Labor is the primary input cost to suppliers, and wages are anticipated to fall as a percentage of revenue. A stable supply chain helps to keep price volatility low, benefiting buyers by allowing for accurate budget planning. For more information, visit IBISWorld’s Mailing Services 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 services. Mailing services aid business productivity by reducing time spent on mailing activities such as labeling, inserting, sorting and metering. Mailing service providers are most often known as presorters, though they commonly offer additional mail services beyond sorting. Presorters must be certified by the United States Postal Service. This report encompasses mailing activities leading up to submission into the postal system, but excludes postal services themselves.
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.