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Procurement Market Intelligence Report

Drilling Tools
Sourcing Guide & Market Trends

Comprehensive intelligence for making smart purchasing decisions

Learn about actual and potential costs

How much should I pay for Drilling Tools?

What is the average price of Drilling Tools?

This procurement report includes pricing information to help you purchase Drilling Tools. 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 Tools 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 Tools 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 Tools?

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 Tools 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 drilling tools has a moderate level of concentration, indicating that the top four companies account for between 30.0% and 50.0% of revenue in 2020. The significant up-front costs associated with manufacturing drilling tools have largely prevented the entry of new vendors into the market. Moreover, challenging conditions... 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 systems are in place at your company?

What steps do you take to ensure consistent quality?

On average, how many faulty drilling tools are produced annually?

How does your product quality differ from that of your competitors? What sets your product line apart?

Amid widespread health concerns due to the coronavirus, what contingency plans are in place to mitigate the risk to your clients and employees? Do you offer clients any flexible exceptions, such as contract suspensions?

Cost Containment

How have fluctuations in the prices of inputs, such as steel, affected the prices of your drilling tools 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 receive lower pricing?

Have you experienced any supply disruptions resulting from raw material shortages? How did you manage the situation?

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

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 recommended maintenance schedule for your tools?

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

Do you provide training courses on how to properly operate and maintain the tools?

Competition

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

How do you win and retain business?

What sets your product apart from your competitors'?

Do you offer any value-added products or services that your competitors do not?

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

Incentives

Are there any incentives for repeat customers?

What promotional deals exist for bulk buyers?

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

Do you offer any complementary products or services with the purchase of this machinery? If so, what are they?

Logistics

Could you provide a list of your domestic and international distribution facilities?

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

How do you ensure timely and accurate shipping?

Where are your manufacturing facilities located? What about your warehouses? What product or service does each location provide?

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Key elements for every RFP

What should my RFP include?

Project Budget

Buyers should state their budget designated for the drilling tools required.

Buyers should provide a breakdown of their budget, stating whether the budget includes additional costs such as shipping and handling.

Selection Criteria

Buyers should consider the performance of the drilling tools being offered by vendors, using reviews and client testimonials to assess this trait.

Buyers should consider the price of each drilling tool when selecting a vendor.

Buyers should consider the reliability of the drilling tools and their expected lifespan under normal conditions and usage.

Project Schedule

Buyers should provide details regarding the key dates throughout the RFP process, such as the final dates to submit questions and proposals.

Buyers should provide details regarding delivery schedules, including the date on which the first delivery is expected and the dates of any additional deliveries from there on out.

Evaluate major factors to mitigate risk

How risky is the supply chain?

The supply chain risk for drilling tools is moderate. Key inputs such as iron and steel products are subject to frequent price swings due to their commoditized nature. This price volatility can force suppliers to elevate tool prices to maintain profitability, thereby restricting buyer power. For instance, when prices for... Subscribe to learn more.

HIGH

MEDIUM

LOW