Learn about actual and potential costs
How much should I pay for Drilling Rigs?
What is the average price of Drilling Rigs?
This procurement report includes pricing information to help you purchase Drilling Rigs. 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 Rigs 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 Rigs 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 Rigs?
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 Rigs 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 share concentration for drilling rigs is moderate because the top four vendors account for between 30.0% and 50.0% of rig sales. The level of market share concentration has slowly inched upward in the past three years due to some merger and acquisition activity, including the 2018 acquisition of... 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?
How long have you been supplying drilling rigs? How long have you served operators in my market?
Will you help design and build customized rigs?
What industry do you most commonly supply drilling rigs for?
Could you provide a list of client references, along with contact information?
Do you provide the option to rent drilling rigs? If so, what types of rigs does your current inventory include?
How diversified is your supplier base for raw materials? Do you source from multiple suppliers in different global regions?
Have you experienced supply chain disruptions that undermined your ability to build and supply drilling rigs?
Do you rely on materials with high exposure to market disruptions resulting from the coronavirus? How are you coping with these disruptions?
When input costs rise, how much of the cost is absorbed by you and how much is passed on to customers?
What kind of price caps do you have in place in case of price shocks for key inputs?
Where, geographically, are critical inputs sourced from? Tell me about your quality assurance processes/audits for overseas suppliers.
What have you done to improve the reliability of your equipment in the past few years?
What is the average life span of your drilling rigs?
How do you ensure quality? What performance-monitoring systems are in place at your company?
What is your reputation like among competitors and customers and how have you developed it?
How do your research and development expenses compare to those of your competitors?
How do you stay competitive in the market?
What advantages do your drilling rigs have over those of your competitors?
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?
Do you have a buyback program? If so, what are the terms of the program?
What is the anticipated useful life of your rigs? Are there any instances or circumstances that would significantly reduce the useful life?
Amid widespread health concerns, what contingency plans are in place to mitigate risk to your clients and employees?
What are your shipping rates to my facilities? Do shipping rates vary if I need rigs shipped to more than one location?
How would my location impact the lead time on services and repairs?
Do you allow the usage of a clients' own shipping, transportation or delivery methods?
Could you provide a list of your distribution facilities locations, domestically and internationally?
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Key elements for every RFP
What should my RFP include?
Buyers should specify their total budget.
Buyers should specify the desired payment terms.
Buyers should ensure that the supplier has an inventory of drilling rigs that meets their specifications.
Buyers should reference the Buying-Decision Scorecard section of this report for key criteria to consider when evaluating providers.
Buyers should specify the date proposals are due and when the award will be announced.
Buyers should specify the desired delivery date for the rig(s).
Evaluate major factors to mitigate risk
How risky is the supply chain?
The supply chain risk for drilling rigs is moderate, somewhat challenging buyer negotiation power. Drilling rigs consist of many parts and components, including drill pipes, fuel tanks, accumulators and blowout preventers, although specific inputs vary depending on the type of the rig. As such, the key suppliers of first tier... Subscribe to learn more.