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Strategy

How to Maintain Profit When Supplier Prices Rise

Supplier price increases offer profit opportunities for distributors, especially today. But too often firms miss the boat. Here's a primer on the key levers and strategies to make sure everyone on your team maintains price integrity.

March 23, 2022

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Supplier price increases offer profit opportunities for distributors, especially today. But too often firms miss the boat. Here’s a primer on the key levers and strategies to make sure everyone on your team maintains price integrity.

Over time, supplier prices follow a one-way street: They increase. At the moment, they are increasing rapidly and dramatically. Whether the price increases are small or large, they represent a major profit opportunity for distributors. Unfortunately, that opportunity is often squandered. This report examines the relationship between supplier price increases and distributor profitability from two perspectives:

  • The profit impact: An analysis of how a specific supplier price increase can cause profit to either increase or decrease.

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