Los Angeles, CA (PRWEB) April 10, 2014
Buyers of business forms have a buyer power score of 3.6 out of 5.0, indicative of a moderate level of buyer power. The business form market has a large number of suppliers and a low level of specialization, allowing buyers to easily switch between suppliers. Because of this, buyers are able to negotiate low switching costs to reduce prices, allowing buyers to leverage other supplier’s prices or switch to the supplier with the lowest prices. There are, however, limiting factors to buyer power. Buyers have a limited number of substitutes because each direct substitute has substantial drawbacks, says IBISWorld business research analyst Jesse Chiang. Also, rising input costs, such as paper, coupled with returning demand has allowed buyers to continue raising prices.
Business forms are commoditized goods; therefore, buyers are able to switch effortlessly between operators without risking significant drops in quality. Furthermore, in a market with a large number of suppliers, buyers are able to fully leverage low switching costs because they are able to choose from more than 15,000 suppliers. Still, buyers are somewhat limited by the medium availability of substitutes, says Chiang. Digital forms require significant capital expenditures to ensure the security of digital information, while photocopies and online templates may lack the quality that buyers desire. Consequently, buyers are forced to engage in the business forms market, despite escalating prices.
Buyer power is further limited by unfavorable price conditions. The rising cost of paper has forced suppliers to adjust to the market’s new prices, and has forced suppliers to pass increasing input costs directly to buyers. Because of returning demand for business forms from rising corporate profit and the growth of new business, suppliers have also been able to raise prices without risking the loss of demand. While buyers should seek to engage in contracts to stem rising costs, buyers must carefully evaluate potential operators before signing a contract. The average market vendor carries significant financial risk, and the financial collapse of a supplier could cost buyers capital spent on the contract and the supply of business forms. Major vendors include R.R. Donnelley & Sons Company, The Standard Register Company, Deluxe Corporation and Ennis Inc. For more information, visit IBISWorlds Business Form Printing Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of business form printing. Business forms include purchase order forms, human resource forms and other types of forms. These forms are used by businesses to conduct daily business and keep records transactions. These forms can be customized to tailor to company needs, and altered for preferences in style and functionality. Suppliers that offer business form printing offer a variety of services as well, including custom continuous prints and unit set prints. Business form suppliers include commercial printers, and paper and office supply retailers. This report does not include stationery printing, business card printing or copying services.
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, IBISWorlds 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.