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Procurement Market Intelligence Report
Drilling Fluids
Sourcing Guide & Market Trends
Comprehensive intelligence for making smart purchasing decisions
Learn about actual and potential costs
How much should I pay for Drilling Fluids?
What is the average price of Drilling Fluids?
This procurement report includes pricing information to help you purchase Drilling Fluids. 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 Drilling Fluids 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 Drilling Fluids 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 Drilling Fluids?
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 Drilling Fluids 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 ?
There are an estimated 220 suppliers of drilling fluids in the United States. The level of market share concentration is considered high, meaning the top four suppliers account for more than 50.0% of total market revenue. The market is highly concentrated due to significant up-front costs required to operate in... 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?
Shipping & Distribution
Can you provide a list of your distribution facilities' locations, both domestically and internationally, if applicable?
What are the average shipping rates to my facility? What factors affect these rates?
How is my shipment affected, in both price and shipping time, when shipping to multiple locations?
What is your record for on-time delivery?
What is your average response and delivery time for new orders?
What logistical systems do you utilize to ensure on-time delivery?
Supply Chain
How have fluctuations in the price of key inputs affected the price of your drilling fluids?
What type of agreements and contracts do you have with your upstream suppliers? What is the remaining duration on these contracts?
How will a delay with one of your suppliers affect me as the buyer of your product?
How do you mitigate sudden price increases in raw materials?
Do you have alternative suppliers in the event that one goes out of business or is unable to supply you with the necessary materials?
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?
Vendor Financial Risk
Has your company ever been at risk of bankruptcy and what was done to prevent this?
How does your company stay profitable during contractions in the economy?
Have rising input costs affected your profitability in the past three years?
What is the outlook of your company's future? What investments are being made in the future?
Experience
How long has your company been supplying drilling fluids?
How did your company enter into this market?
Can you provide a list of clients that you have sold drilling fluids to that operate in the same field as my company?
What is your repeat business rate for other companies in my industry?
Inventory
Where are your warehouses located in relation to your manufacturing facilities?
What methods do you use to manage your inventory?
What is the typical inventory level for the products that I am interested in?
How long does it take to obtain a product that is not currently in stock?
How often do customers encounter supply disruptions due to insufficient inventory levels?
Competition
Why is your product priced higher/lower than your competitors'?
What sets your product, in terms of quality, apart from others?
What methods do you use to attract and retain customers?
Do you offer any incentives for returning customers?
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Key elements for every RFP
What should my RFP include?
Project Budget
Buyers should specify the total budget for the purchase.
Buyers should state their preference for a pricing model.
Selection Criteria
Buyers should ensure the proximity of suppliers to reduce lead times.
Buyers should request samples of products, if applicable, and assess the quality of the additives.
Buyers should reference the Buying-Decision Scorecard section of this report for key criteria to consider when evaluating providers.
Project Schedule
Buyers should provide a list of key dates that pertain to the RFP process, including the dates to submit questions and bids.
Buyers should include a timeline of future deliveries.
Evaluate major factors to mitigate risk
How risky is the supply chain?
The supply chain risk in the drilling fluid market is moderate, somewhat challenging buyers. Market suppliers depend on chemical wholesalers to provide key inputs necessary for the production of drilling fluids. Disruptions to the supply of chemicals could have a negative impact on the availability of drilling fluids. However, the... Subscribe to learn more.