When it comes to architectural window film installation, it’s the buyers, not the sellers who have the power of the purse.

That’s according to a recent, semi-annually released report by IBISWorld, a Los Angeles-based firm that specializes in industry market procurement and purchasing research. The report indicates architectural tinting services has a buyer power score of 3.4 out of 5, which indicates a moderately favorable purchasing environment for buyers. The report is used by government contractors and purchasing agents, among others.

Architectural tinting services have a buyer power score of 3.4/5 and an average price of $8.50 per square-foot installed, according to IBISWorld.

According to the firm, the reason buyers are able to negotiate pricing is due to the large number of suppliers, low switching costs and the price-competitive nature of the window film installation market. The firm estimates that there are over 10,000 vendors nationally, which provides buyers with a substantial number of supplier options, though recent demand growth has somewhat suppressed the buyer’s ability to negotiate.

“In the three years prior to 2014, the average price of window tint installation services has been rising at faster than normal rates due to a rise in demand, stemming from a 2011 Department of Energy (DOE) study,” says Erick Delgado, author of the report.

The DOE study touted the environmental costs and benefits of window films, which caused businesses to take notice and some energy companies to offer rebates for installation services. This resulted in a three percent rise in installation services from 2011 to 2014 from an average of $8.25 per square-feet of film to $8.50, though Delgado acknowledged the pricing range varies widely based on the type of film being used.

The report says that tint shops’ purchasing costs should remain flat over the next three years, which would result in a slower rate of growth—that of 2.4 percent—to an average price of $9.13 per square-foot.

IBISWorld projects tinters’ wages will be at pre-recession levels in little more than three years’ time (click for clarity). Courtesy of IBISWorld.

Also estimated by IBISWorld was the average cost structure of running a tint shop. According to the report, on average only 3.3 percent of shops’ revenue is actual profit with 30.8 percent being wages, 41.1 percent purchases of window film and other materials and 24.8 percent of revenue on overhead.

The report excludes pricing of automotive tinting services and can be purchased here.

Does your tint shop compare similarly? Leave a comment below.