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Cardiac Pacemakers Procurement Research Report Now Available from IBISWorld
Date:12/25/2013

Los Angeles, CA (PRWEB) December 25, 2013

On a scale of one to five, with a higher number indicating better negotiating conditions for buyers, cardiac pacemakers have a buyer power score of 3.3. This score reflects the fact that neither buyers nor suppliers command an overwhelming amount of power when negotiating supply arrangements. “Factors eroding buyer power include high demand, which is expected to continue rising over the next three years; high market share concentration, a medium level of product specialization and few substitutes,” says IBISWorld business research analyst Keiko Cadby. “Nonetheless, intense vendor competition and low switching costs give buyers a degree of leverage over suppliers.”

Increasing demand, fueled by demographic trends, support these rising prices. More than 85.0% of cardiac pacemakers are used by adults aged 65 and older, and an increasingly aging population will further add to demand. “High market share concentration allows the monopoly of a few manufacturers to set list prices, and the medium level of specialization and low level of substitutes for cardiac pacemakers makes it difficult for buyers to seek lower prices elsewhere,” says Cadby. The excise tax on medical devices further erodes manufacturers' motivation to lower prices, and pressure to remove and replace faulty products from the market is a disincentive for suppliers to reduce profit margins.

Despite rising prices, buyers can take advantage of intense supplier competition and low switching costs. A request for proposal with set maximum prices can elicit deeper discounts from competing manufacturers, distributors and wholesalers. Because cardia
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