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Procurement Market Intelligence Report

Downhole Instrumentation
Sourcing Guide & Market Trends

Comprehensive intelligence for making smart purchasing decisions

Learn about actual and potential costs

How much should I pay for Downhole Instrumentation?

What is the average price of Downhole Instrumentation?

This procurement report includes pricing information to help you purchase Downhole Instrumentation. 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 Downhole Instrumentation 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 Downhole Instrumentation 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 Downhole Instrumentation?

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 Downhole Instrumentation 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 ?

In 2020, ProcurementIQ estimates that there are 63 vendors of downhole instrumentation in the United States. Although the recent downturn in the oil and gas sector has, to an extent, restricted demand for equipment and services, most of these suppliers boast diverse portfolios of products and services, which has helped... 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

How long have you been active in this field? How long have you supplied downhole instrumentation?

Will you help design and build customized equipment?

How long have you provided these systems to your longest tenured client?

What are your renewal and repeat business rates for these systems and how does that compare to your overall rates?

Cost Containment

In the past three years, what percentage of your revenue has been dedicated toward raw input materials? How has that changed?

How do you mitigate sudden price increases in raw materials?

How have fluctuations in input costs affected the prices of your equipment in the past three years?

When prices of inputs rise, how much of the cost is absorbed by you and how much is passed onto buyers?

Do you source materials with high exposure to market disruptions resulting from the coronavirus? How are you coping with these disruptions?

How diversified is your supplier base for inputs? Do you source from multiple suppliers in different global regions?

Related Goods

What additional products or services do you offer separate from the purchase of this equipment?

What type of discounts do you offer for specific types or brands?

Are there any incentives for repeat customers?

What other tools and services do you provide that you think may be of use to me, specifically?

Quality Control

What types of technical issues have you experienced with this system?

How often do you experience defects with your equipment? To what degree are in-process inspections and process controls carried out?

What is the expected useful life of your downhole monitoring systems?

What proportion of revenue is dedicated to research and development?

Warranty

Do you offer a warranty on your downhole instrumentation? What do your warranties cover?

How long does the warranty last?

What are the terms and conditions of the warranty? Does the warranty require paperwork?

In what instances or under what circumstances can the warranty be voided?

Distribution

What are your shipping rates to my facilities? Do shipping rates vary if I need equipment shipped to more than one location?

Can you provide a list of your distribution facility locations, domestically and internationally?

To what extent do you allow buyers to use their own shipping, transportation and delivery methods?

What shipping supplier do you primarily use? Do you have alternate preferred suppliers?

Are you experiencing fluctuations in demand as a result of the coronavirus outbreak? What measures are you taking to handle increased/reduced demand?

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Key elements for every RFP

What should my RFP include?

Project Budget

Buyers should specify the total budget.

Buyers should specify the desired payment terms, including the preferred interest rate, if applicable.

Buyers should request information about shipping costs and terms.

Selection Criteria

Buyers should ensure that the provider's instrumentation meets their specifications.

Buyers should ensure that the system is compatible with their other equipment and tools.

Project Schedule

Buyers should specify the date proposals are due and when the award will be announced.

Buyers should indicate the date by which the system must be delivered and installed.

Evaluate major factors to mitigate risk

How risky is the supply chain?

The supply chain for downhole instrumentation is exposed to a moderate degree of risk, somewhat challenging buyers. Key first tier suppliers provide inputs such as steel, software products and sensors. Generally, the risk of upstream supply disruptions is negligible in this market, supporting buyer power by ensuring the availability of... Subscribe to learn more.

HIGH

MEDIUM

LOW