The pricing and cost analysis helps in deriving and forecasting the actual cost of products or services over the forecast period. It considers all the cost components and provides a competitive edge during supplier negotiations. Moreover, the outcome helps procurement leaders understand detailed and fact-based cost drivers for the category.
In this Point of Sale Materials (PoSM) procurement intelligence report, we have estimated the key cost components, which include raw materials, labor, technology, machinery and equipment, rent and utilities, and others. Other costs include maintenance and repair, certifications, administrative fees, tax, insurance, and interest on loans.
The prices of point of purchase (PoP) displays that fall under point of sales materials (PoSM) are influenced by several factors such as branding & printing of the display, the materials that have been utilized in making a display, size of the display, and the number of items that can be part of the display solution.
Fixed pricing is one of the prominent pricing structures followed in the industry. A product/service in this model has a set price that doesn't change over time. It's an easy pricing approach. It is primarily applied for goods and services with steady consumer demand. With this pricing technique, the price is fixed for every consumer, independent of supply and demand. Competition-based pricing is another model followed in the industry. This model puts more of an emphasis on the market than it does on the manufacturer’s expenses.
Every organization and its procurement team look forward to negotiating the best deal while procuring a set of products or subscribing to services. Rate benchmarking involves price/cost comparison of more than one set of products/services to analyze the most efficient combination that can potentially help the procurement team in getting the optimum rate.
Below are price examples for a few of the point of sale materials (PoSM):
a) The prices of ‘shelf-talkers’ in the U.S. range between USD 9.47 for a pack of 25 units to USD 66.17 for a pack of 25 units, subject to different dimensions.
b) The prices of ‘floor retail store displays’ in the U.S. range between USD 50.59 to USD 1,547.90 depending upon different products, such as heavy-duty wood luggage rack, four tier wire basket, retractable air stand and hook display rack.
c) The prices for ‘banners’ used in retail stores in the U.S. range between USD 6.8 to USD 24.9, subject to the type of banners, such as promotional banners, sales banners, company banners and advertising banners.
d) The prices for ‘end cap displays’ in the U.S. range between USD 750 to USD 2,500 per unit.
To gain a comprehensive understanding of other aspects of rate benchmarking, please subscribe to our services and get access to the complete report.
Labor cost is one of the key components of the total cost incurred while offering a product or service. Therefore, an organization must decide whether the focus category should be retained in-house or outsourced if the organization is providing its products or services at competitive prices. If the organization decides in favor of outsourcing, it must understand the difference in the salary structures of suppliers before selecting a supplier and formulating a negotiation strategy.
According to our research, Point of Sale Associates working with HH Global Ltd. and One Plus Management Limited (Rising) receive 10%–15% higher base salary compared to the salary received by Point of Sale Associates working with Trion Industries, Inc. and VKF Renzel GmbH. However, the year-on-year increment rate in all these companies majorly depends on the Key Result Areas (KRAs).
Organizations may find it cumbersome to continuously track all the latest developments in their supplier landscape. Outsourcing the activities related to gathering intelligence allows organizations to focus on their core offerings. At this juncture, our newsletter service can help organizations stay updated with the latest developments and innovations and subsequently assist in preventing disruptions in the supply chain. We have identified the following developments within the Point of Sale Materials (PoSM) category over the last two years:
In January 2024, Amitoje India inaugurated its largest and fourth production facility in the National Capital Region (NCR) of the nation. The overwhelming support that the company has received across India led to this expansion, serving over 699 customers in 2023 alone. The company is focusing on patenting its designs and prioritizing innovations.
In January 2024, HH Global Ltd. announced the acquisition of Displayplan Ltd. This acquisition is helping HH Global in enhancing its retail capability by expanding its area of competence. In addition, HH Global is developing leading solutions for international retail brands, supplemented by Displayplan’s capabilities in the areas of design engineering, manufacturing management, and the creation of complicated point-of-sale solutions.
In November 2023, Tokinomo Marketing S.R.L. introduced ‘Visibubble,’ an interactive PoSM display for brand activations within stores. This innovative solution leads to increased customer engagement by offering a mobile messaging feature on the shelf, enabling direct communication between the shoppers and the brands/products via text messages.
Component wise cost break down for better negotiation for the client, highlights the key cost drivers in the market with future price fluctuation for different materials (e.g.: steel, aluminum, etc.) used in the production process
Offering cost transparency for different products / services procured by the client. A typical report involves 2-3 case scenarios helping clients to select the best suited engagement with the supplier
Determining and forecasting salaries for specific skill set labor to make decision on outsourcing vs in-house.
A typical newsletter study by capturing latest information for specific suppliers related to: M&As, technological innovations, expansion, litigations, bankruptcy etc.