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Procurement Market Intelligence Report
Commercial Water Heaters
Sourcing Guide & Market Trends
Comprehensive intelligence for making smart purchasing decisions
Learn about actual and potential costs
How much should I pay for Commercial Water Heaters?
What is the average price of Commercial Water Heaters?
This procurement report includes pricing information to help you purchase Commercial Water Heaters. Our analysts provide a benchmark price and a price range based on key pricing factors to help you understand what you should be paying for this specific product or service. To see the average price for this and hundreds of other products and services, subscribe to ProcurementIQ.
Has the price of Commercial Water Heaters been rising or falling?
Analysts look at market data from the previous three years to determine an overall price trend. You can use the recent price trends to help you understand price volatility and plan your budget.
I’m not ready to purchase Commercial Water Heaters yet. Will I pay more if I wait too long?
We forecast the next three years of price movements by looking at factors likely to affect the market's supply chain, such as inputs, demand and competition. You can then use the price forecast to figure out the best time to purchase.
What other costs are associated with purchasing Commercial Water Heaters?
Our analysts calculate the total cost of ownership and assign a level of low, moderate or high, depending on things like customization, integration and installation. Use this information to budget for Commercial Water Heaters with a reduced risk of unexpected costs.
See how we display average pricing information, trends and market data.
Find the vendor to meet your needs
Where can I purchase ?
The top four firms that sell commercial water heaters display a medium market share concentration and account between 30.0% to 50.0% of total market revenue. ProcurementIQ estimates that there are 550 suppliers in the market, about 65 of which are manufacturers. The market share concentration has remained moderate during the... Subscribe to learn more.
Questions to ask potential suppliers
How can I gain leverage during negotiations?
Experience and Expertise
How long have you provided these products to your longest-tenured client?
What qualifications does your staff have and what measures do you take to keep those qualifications up to date?
What industry do you most commonly supply this product for?
To what extent will ordering multiple products from your firm allow me to save on costs?
What is your repeat business rate for businesses in my industry and how does that compare to your overall rates?
Supply Chain Risk
Over the past three years, what percentage of your revenue has been dedicated to raw input materials? How has that changed?
Has the availability of raw materials tightened due to the coronavirus outbreak?
Over the past three years, what percentage of your revenue has been dedicated to labor?
How have fluctuations in input prices affected the prices of your products during the past three years?
How do you mitigate sudden price increases in raw materials?
When input prices rise, how much of the cost is absorbed by you and how much is passed onto buyers?
How, if at all, has your supply chain been affected by import tariffs levied in 2018?
Regulation
How do you manage regulatory change? Do you have regulation advisers or methods to track regulation?
How have changing regulations influenced your pricing now and how will the changes affect prices over the life our proposed agreement?
What ongoing training procedures do you provide for your staff?
Have you ever been found to be noncompliant with regulatory frameworks?
Amid widespread health concerns during the COVID-19 pandemic, what contingency plans are in place to mitigate risk to your clients and employees? Do you offer clients any flexible exceptions, such as contract suspensions?
Experience
What industry do you most commonly supply these products for?
What is your repeat business rate for businesses in my industry and how does that compare to your overall rates?
Could you provide a list of client references, along with their contact information?
Why did the last two clients you lost cancel their contracts with you? Who are they using now?
Are you experiencing fluctuations in demand as a result of the coronavirus pandemic? What measures are you taking to handle increased or reduced demand?
Amid widespread health concerns, what contingency plans are in place to mitigate the risk to your clients and employees? Do you offer clients any flexible exceptions, such as contract suspensions?
Competition
How long have you been in the water heater market?
How do your product offerings differ from your competitors'?
How do you stay competitive in the market?
What is your client retention rate?
Who are your biggest competitors and what aspects of your business give you an edge against them?
What is your reputation among customers, and how have you achieved your reputation?
Quality
What performance-monitoring systems are in place at your company?
What steps do you take to ensure consistent quality?
On average, how many faulty water heaters does your company manufacture annually?
How does your product quality differ from that of your competitors? What sets your product line apart?
What types of technical issues have you experienced with this product?
Input Costs
How have fluctuations in the prices of inputs such as steel affected the prices of your commercial water heaters during the past three years?
How do you mitigate sudden price increases in raw materials?
How diversified is your supplier base for inputs? When input costs rise, are you able to source the product from a different supplier to get lower pricing?
Have you experienced any supply disruptions resulting from raw material shortages? How did you handle the situation?
Do you source materials with a high exposure to market disruptions resulting from the pandemic? How are you coping with these disruptions?
Shipping
What are your shipping rates to my facilities? Do shipping rates vary if I need products shipped to more than one location?
Do you allow clients to use their own shipping, transportation or delivery methods?
Could you provide a list of your domestic and international distribution facilities?
How do you ensure timely and accurate shipping?
What is your record for on-time delivery? How quickly can you respond to new requests?
What are your current shipping times during the pandemic?
Warranty
What are the terms and conditions of the warranty? Does the warranty require paperwork?
What do your warranties cover?
Is the warranty provided by you or is it an aftermarket warranty?
Are there any instances or circumstances that I should be aware of that will void the warranty?
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Key elements for every RFP
What should my RFP include?
Project Budget
Buyers should explicitly state the amount for the award.
Buyers should explain the schedule with which payments will be made.
For assistance in ascertaining a reasonable price and price range for commercial water heaters, buyers can consult the Benchmark Price section of this report.
Selection Criteria
Buyers should look for suppliers that have been in business for a long time and have direct experience providing the kind water heaters they are seeking.
Buyers should ask for a list of references from both current and former customers.
Buyers should give preference to local suppliers because it will cut down on costs related to transportation, and using a local supplier will simplify communication.
For a detailed list of key selection criteria, buyers should reference the Buying-Decision Scorecard section of this report.
Project Schedule
Buyers should communicate to prospective suppliers when award information results will be provided.
Buyers need to provide due dates for any ongoing maintenance work.
Buyers should provide general expectations with regards to response time and customer service.
Buyers should list the expected start and finish dates once a prospective supplier is chosen.
Evaluate major factors to mitigate risk
How risky is the supply chain?
The supply chain for commercial water heaters presents buyers with a moderate level of risk. Economic, political and weather-related activities impact the supply chain and ultimately affect product prices. Investment in machinery and equipment has fluctuated as industrial production activity has declined during the pandemic. Fluctuating demand for this equipment... Subscribe to learn more.
HIGH
MEDIUM
LOW
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