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Procurement Market Intelligence Report

Drill Bits
Sourcing Guide & Market Trends

Comprehensive intelligence for making smart purchasing decisions

Learn about actual and potential costs

How much should I pay for Drill Bits?

What is the average price of Drill Bits?

This procurement report includes pricing information to help you purchase Drill Bits. 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 Drill Bits 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 Drill Bits 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 Drill Bits?

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 Drill Bits 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 market for drill bits is moderately concentrated, with the top four vendors generating between 30.0% and 50.0% of market revenue. Currently, there are an estimated 830 suppliers of drill bits, the largest of which are General Electric, Schlumberger, National Oilwell Varco and Halliburton. Market share concentration has remained steady... 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?

Quality

What performance-monitoring or quality-control systems are in place at your company?

What steps do you take to ensure consistent quality?

On average, how many faulty drill bits does your company produce annually?

How does your product quality differ from that of your competitors?

Is your company ISO registered?

Product Specifications

What manufacturing specifications do you follow to produce your drill bits and accessories?

Do you specialize in a specific type or line of drill bits?

What customization options (if any) are available for your drill bit products? How does that impact lead time?

What are your most popular drill bits, and why?

Competition

Are there any incentives for repeat customers?

Are there promotional deals for bulk buyers?

How diversified is your product portfolio?

How do you win and retain business?

What is your reputation like among customers, and how have you developed it?

What sets your product line apart from competitors'?

Cost Containment

How have fluctuations in the prices of inputs, such as steel and industrial diamonds, affected the prices of your drill bits in 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 manage the situation?

Service & Maintenance

Do you offer maintenance and repair services? If not, can the service be included at an additional cost?

How quickly can your technicians be on site if technical support or repair is required?

What is the anticipated useful life of your product? Are there any instances or circumstances that would significantly reduce its useful life?

Do you provide counsel on how to properly maintain bits and accessories?

Location

What are your shipping rates to my facilities?

Where are your manufacturing facilities located?

Do you allow clients to use their own shipping, transportation or delivery methods?

Do you have low inventory or supply issues with any of the products we are ordering? How will these affect shipping times?

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Key elements for every RFP

What should my RFP include?

Project Budget

Buyers should state their expected order value.

Buyers should state whether their stated budget includes other costs, such as shipping costs or any additional products or value-added services being included in the purchase.

Selection Criteria

Buyers should favor vendors that are able to provide drill bits that meet their exact specifications and needs.

Buyers should prioritize selecting a vendor that can offer the entire order being requested with minimal delays due to products being on backorder.

Buyers should consider the reputation of the vendor and their experience in the market.

Buyers should consider the vendors level of customer service.

Project Schedule

Buyers should provide a list of key dates that pertain to the RFP process, such as the final dates to submit questions and final proposals.

Buyers should provide information regarding delivery dates and times, such as the frequency they expect delivers, if the contract includes an ongoing supply of drill bits, and the times in which the buyer will be available to receive the shipments.

Evaluate major factors to mitigate risk

How risky is the supply chain?

The supply chain for drill bits is exposed to a moderate level of risk, which primarily stems from the volatile prices of inputs such as iron, steel, industrial diamonds and tungsten. These input materials are subject to frequent and volatile price swings that force suppliers of drill bits to evaluate... Subscribe to learn more.

HIGH

MEDIUM

LOW