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The 1% Problem: Why Even Best-in-Class Distributors Leave SPA Margin on the Table

Many distributors believe they collect 100% of the special pricing agreement profit margin they claim. The real question is different: Are you claiming everything you’re entitled to? The second of this three-part deep dive series explores the hidden operational gaps quietly draining SPA margin.

February 19, 2026

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Editor's Note: This is the second article in a three-part series that serves as a primer for a forthcoming MDM whitepaper on this same topic that will cover substantially more material. See Part 1 here, Part 2 here and Part 3 here.

Why Margin Gets Missed

What I have found is that distributors with well-run Special Pricing Agreement (SPA) operations underclaim 1 to 3% of SPA transactions. Stated in a different way: Even successful distributors don’t claim everything they’re legitimately entitled to. 1 to 2% leakage may sound small, until you do the math. For a company managing one hundred…

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