The AOP Buyer Power Score is a new content offering created in partnership with ProcurementIQ that rates the balance of power between buyers and sellers for a particular spend category.
Today we are reviewing portable toilet rental.
The Buyer Power Score for portable toilet rental services is -0.2 on a scale of -5 to 5, with -5 signifying low buyer power and 5 meaning high buyer power. The more power a buyer has the greater leverage they have to get lower prices and better contract terms.
This Buyer Power Score suggests that although the category is close to being in a neutral position, a small advantage goes to the suppliers. However, the current buyer power score is above the average for 2019 to 2022 and is expected to fall next year resulting in harsher negotiating conditions.
How to Use this Information
In the case of portable toilet rental services, buyers may see their cost-related negotiating leverage decline in areas where the suppliers also don’t have control. For instance, fluctuating fuel costs are a primary cost driver as is the return of social events in some areas, and suppliers do not have control over either of these factors. One other interesting fact about portable toilet rental services is that, unlike traditional categories that offer economies of scale for larger purchases, total cost of ownership tends to be lower for buyers renting smaller amounts of standard toilets, but higher for buyers renting larger amounts of upscale toilets. Upscale portable toilets may be trailer-mounted or offer sanitizer dispensers and/or sinks.
We have partnered with ProcurementIQ to dig into their treasure trove category intelligence reports, with new insights every Friday. To dig deeper into portable toilet rental services, and over 1,000 other indirect spend categories, visit procurementiq.com.