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Procurement Market Intelligence Report

Metal Cutting Tools
Sourcing Guide & Market Trends

Comprehensive intelligence for making smart purchasing decisions

Learn about actual and potential costs

How much should I pay for Metal Cutting Tools?

What is the average price of Metal Cutting Tools?

This procurement report includes pricing information to help you purchase Metal Cutting 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 Metal Cutting 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 Metal Cutting 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 Metal Cutting 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 Metal Cutting 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 metal cutting tool market has a low level of market share concentration, with the top four suppliers accounting for less than 20.0% of total market revenue. Overall, there are about 1,275 suppliers of metal cutting tools. Market share concentration is low because low barriers to entry allow new distributors... 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 operated in the metal cutting tools market?

What is your repeat business rate for companies similar to mine?

Why did the last two clients you lost cancel their contracts with you?

Are you able to manufacture customized metal cutting tools for my specific application?

COVID-19

Do you source materials with a high exposure to market disruptions resulting from the pandemic? 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?

Amid widespread health concerns, 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?

Are you experiencing fluctuations in demand as a result of the coronavirus pandemic? What measures are you taking to handle changes in demand?

Competition

How do you win and retain business?

How long have you provided this product to your most-tenured client?

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

How is your product better than your competitors' products?

How will your company deal with the rising competition from imports?

Product Lines

What products or services do you offer in addition to metal cutting tools?

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

Are there any incentives for repeat customers?

What promotional deals exist for bulk buyers?

How many different brands do you carry?

Which are you best-selling models or brands?

What volume of tools do you have readily available?

Supply Chain Risk

How do you manage risk in your supply chain?

Do you have contracts and relationships with multiple raw material suppliers?

Where are your input suppliers located?

Have you ever experienced a price spike from one or more of your suppliers? How did you cope with the spike?

How do you mitigate the risk associated with acquiring metal inputs?

Quality

What is the average life span of your products?

Can you provide me with references attesting to your service quality from companies in my industry?

What quality control procedures do you implement?

How do you track customer satisfaction?

How do you ensure your product's quality?

What quality awards have you received in recent years?

Location

If I am located in a different region, do you anticipate any difficulties in delivering the product?

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

What logistical systems do you have in place to manage outgoing shipments?

How do you ensure timely and accurate shipping?

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

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Key elements for every RFP

What should my RFP include?

Project Budget

Buyers should include the budgeting fees for transporting the tools and complementary equipment to their location.

Buyers should define a cost breakdown of inventory.

Buyers should define payment schedules.

Buyers should state how often pricing can be adjusted.

Selection Criteria

Buyers should evaluate suppliers on whether they price competitively.

Buyers should give priority to suppliers that are flexible with contract terms and conditions.

Buyers should request references from current and former clients.

For other selection criteria requirements, buyers should reference the Buying-Decision Scorecard section of this report.

Project Schedule

Buyers should disclose the RFP's issue date.

Buyers should disclose the due date for any questions or clarifications from suppliers.

Buyers should disclose when they will answer any questions or clarifications.

Buyers should disclose the date of the award announcement.

Buyers should list the expected start date once a supplier is chosen.

Evaluate major factors to mitigate risk

How risky is the supply chain?

Supply chain risk is moderate for metal cutting tool suppliers. Moderate supply chain risk harms buyer power, although disruptions to the supply of key cutting tool components and raw materials are unlikely. First and second tier suppliers provide the raw materials needed to produce the machinery for metal cutting... Subscribe to learn more.

HIGH

MEDIUM

LOW