Learn about actual and potential costs
How much should I pay for Directional Drilling Services?
What is the average price of Directional Drilling Services?
This procurement report includes pricing information to help you purchase Directional Drilling Services. 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 Directional Drilling Services 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 Directional Drilling Services 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 Directional Drilling Services?
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 Directional Drilling Services 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 ?
ProcurementIQ estimates there are about 1,300 suppliers of directional drilling services in the US market. Market share concentration is moderate, with the top four vendors generating about 35.0% of directional drilling revenue. These major vendors are able to capture a greater percentage of market share due to their strong brand... 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?
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?
What similar projects have you worked in the past? What challenges did you face and how did you overcome them?
What experience do you have working with different soil conditions?
On average, how many years of experience does your staff have in this field? How does that measure up to the market average?
Can you provide a list of the last five directional drilling projects you have worked on, including the outcome, timeline and costs of those projects?
How do you ensure the accuracy of your drilling?
What equipment, tools or software do you use to minimize errors and your environmental impact?
How often is your equipment and software updated, if applicable?
Is your essential equipment certified to national standards? Are records of inspection maintained?
What kind of warranties can you provide for the integrity of the work?
Have you ever had challenges with costs beyond what was budgeted in your contract? What changes have you made as a result of those experiences?
Who is in charge of maintaining the budget on projects? Is it someone on the key team, or an outside eye?
What cost-saving measures do you employ at your firm?
What contingencies are built into your budget, and how frequently are those contingencies used?
What methods do you use to stay informed about ongoing regulatory changes?
How have you adjusted to new regulations in the market? How have additional compliance costs been handled?
Will you take care of all necessary licensing and permits, as well as approvals and certifications from applicable regulatory bodies?
Have you ever faced a lawsuit pertaining to environmental regulations? What was the outcome? Are you liable for any damages?
How accurate are your time estimates for projects?
What checks and balances are in place to assure that the work is done on time without sacrificing quality?
Is there a project manager responsible for maintaining the timeliness and budget for this project? Will we have access to this person?
Can you create a timeline of steps involved in fulfilling this contract? What is my recourse if you are late?
Do you source materials with high exposure to market disruptions resulting from the coronavirus? Have these disruptions affected your ability to stick to project timelines?
Are you experiencing fluctuations in demand as a result of the coronavirus outbreak? What measures are you taking to handle increased/reduced demand?
What value-added services do you provide?
How does including value-added services impact pricing?
How do you maintain your operational efficiency when offering more than just your core services?
Will any work need to be subcontracted out?
Will subcontracting add to the project's costs?
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Key elements for every RFP
What should my RFP include?
Buyers should state their total budget for the project described in the RFP.
Buyers should state their payment expectations, stating the method through which they will be paying for these services as well as the frequency of payments.
Buyers should consider the experience of the supplier, taking into consideration their experience in both the overall market and working on projects similar to the buyer's.
Buyers should consider the safety record of the service provider, giving preference to vendors that have a history of minimal accidents.
Buyers should carefully consider each supplier’s cost proposal.
Buyers should provide a timeline, highlighting key dates that pertain to the RFP process, including the final dates to submit questions to the buyer and provide a bid.
Buyers should provide a timeline that covers the key milestones of the overall project, including the first day the supplier will begin to render services and the expected completion date.
Evaluate major factors to mitigate risk
How risky is the supply chain?
The supply chain for directional drilling services has a moderate degree of risk, which limits buyer power to an extent. Key first tier inputs include sensors, drilling equipment and drilling chemicals. Among these inputs, drilling chemicals have the strongest impact on the supply chain due to market vendors' frequent need... Subscribe to learn more.