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Procurement Market Intelligence Report

Variable-Speed Drives
Sourcing Guide & Market Trends

Comprehensive intelligence for making smart purchasing decisions

Learn about actual and potential costs

How much should I pay for Variable-Speed Drives?

What is the average price of Variable-Speed Drives?

This procurement report includes pricing information to help you purchase Variable-Speed Drives. 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 Variable-Speed Drives 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 Variable-Speed Drives 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 Variable-Speed Drives?

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 Variable-Speed Drives 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 ?

Market share concentration in the VSD market is high. Although ProcurementIQ estimates there are 780 suppliers operating in the United States, the top four suppliers account for about 68.0% of market revenue. Despite the presence of many manufacturers and even more wholesalers, large-scale manufacturers like ABB Ltd., Eaton Corporation, Siemens... 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?

Experience & Expertise

How long have you served operators in my industry?

What are some similar clients you have served?

Could you provide a list of client references, along with contact information?

What industry do you most commonly supply this product for?

Quality Control

What is the average life span of your VSDs? How does this compare with the advertised life span, and the life span of your competitors' products?

What types of technical issues have you experienced with this product?

How do you ensure your product's quality?

How many recalls have you had? How have you handled these recalls?

Supply Chain Risk

Who are your most important suppliers? How long have you been in business with them?

Do you source materials with a 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?

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

How do you manage risk in your supply chain?

What is your breakdown of revenue by industry?

Product Lines

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

Do you provide installation services?

What are the incentives for me to use your preferred installer?

What type of discounts do you offer for specific brands and for volume purchases? What new products or solutions have you introduced to address issues brought on by the coronavirus pandemic?

Customer Service

Will I have access to a certified VSD specialist to answer any questions or concerns that may arise during and after my purchase?

Do clients have a dedicated account manager or do they call a general support line?

How many clients does each account manager look after?

Do you have response-time benchmarks for following up with or solving a problem for a client?

Amid widespread health concerns, 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?

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


What do your warranties cover?

If my product breaks down while under warranty, do you provide loaners while mine is being repaired? If so, is there an additional charge?

Are there any instances or circumstances that will void the warranty that I should be aware of?

Are there any transportation, labor or replacement fees associated with warranty claims?

Can I purchase an extended warranty?

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Key elements for every RFP

What should my RFP include?

Project Budget

Buyers should explicitly state the amount for the award.

Buyers should explain the schedule with which payments will be made.

For assistance in ascertaining a reasonable price and price range for VSDs, buyers can consult the Benchmark Price section of this report.

Selection Criteria

Buyers should look for suppliers that have been in business for a long time and have direct experience providing the kind of VSDs they are seeking.

Buyers should ask for a list of references from current and former customers.

Buyers should give preference to suppliers that can demonstrate the energy efficiency and cost savings potential of their VSDs.

For a detailed list of key selection criteria, buyers should reference the Buying-Decision Scorecard section of this report.

Project Schedule

Buyers should communicate to prospective suppliers when award information results will be provided.

Buyers need to provide due dates for any ongoing maintenance work.

Buyers should provide general expectations with regard to response time and customer service.

Buyers should list the expected start and finish dates once a prospective supplier is chosen.

Evaluate major factors to mitigate risk

How risky is the supply chain?

The supply chain risk for VSDs is moderate. Most supply chain risk comes from suppliers' reliance on steel, aluminum, copper and other metal-based screws, nuts, bolts and electrical components. As commodities, the prices of these metals are subject to volatility stemming from global trends in supply and demand. For example,... Subscribe to learn more.