Point of Sale Terminals Procurement Category Market Research Report Now Available from IBISWorld

Los Angeles, CA (PRWEB) May 14, 2014

Point of sale (POS) terminals^[1] have a buyer power score of 4.0 out of 5, indicating better negotiating conditions for buyers. Buyers benefit from favorable pricing trends and low market risks; however, the market's structure detracts from the buyer score.

Pricing trends have been favorable for buyers as prices are expected to fall. POS terminals^[2] require a wide variety of semiconductors, computer chips and microprocessors. Prices for these inputs have steadily declined, explained by a phenomenon known as Moore's Law, under which manufacturers are able to shrink down the size of these components and achieve cost savings in the process. As a result, suppliers have been able to achieve cost savings in the production process and pass on these savings to buyers in the form of lower prices, says IBISWorld analyst Andrew Yang. In addition, more and more consumers are making purchases online, negating the need for POS terminals entirely. In the three years to 2013, prices have declined slightly with low price volatility. These trends are expected to continue and prices are expected to continue falling in the next three years.

Buyers also benefit from low market risks. Many suppliers are diversified companies with moderate profit margins and low bankruptcy risks. Supply chain risks are also low as most suppliers are global companies with well-established supply chains, continues Yang. This allows them to procure the inputs that they need to manufacture POS terminal hardware without difficulty. As a result, buyers can expect reliable and steady access to POS terminals. Major suppliers in this market include International Business Machines Corporation, NCR Corporation and VeriFone Systems Inc.

However, the market's structure significantly lowers the buyer score. Product specialization and market share concentration are high, meaning that there is a limited number of suppliers that can provide solutions for buyers. High market share concentration also lowers competition, decreasing pressure on suppliers to provide discounts. In addition, POS terminals are usually customized for each buyer and are deeply integrated with buyers' IT infrastructures, software programs and retail operations. This raises switching costs for buyers and the risk of getting locked with a supplier. For more information, visit IBISWorld’s Point Of Sale Terminals^[3] procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of point of sale terminals. Point of sale terminals are hardware and software systems used to execute and manage retail transactions. A point of sale terminal may include a cash register, a computer, a receipt printer and a credit card processor. Aside from sales, a point of sale terminal can also manage inventory, customer orders, promotions, discounts and gift cards. This report focuses on point of sale terminals in physical locations and excludes e-commerce payment systems used online.

Executive Summary
Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast
Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Regulation
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Imports
Competitive Environment
Market Share Concentration
Market Profitability
Switching Costs
Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements
Negotiation Questions
Buyer Power Factors
Key Statistics

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^[6] or call 1-800-330-3772.

References

1. ^{^}Point Of Sale Terminals (www.ibisworld.com)
2. ^{^}Point Of Sale Terminals (www.ibisworld.com)
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4. ^{^}https://twitter.com/#!/IBISWorld (twitter.com)
5. ^{^}http://www.facebook.com/pages/IBISWorld/121347533189 (www.facebook.com)
6. ^{^}http://www.ibisworld.com (www.ibisworld.com)