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Pricing

While Most Distributors Bleed Profits from Tariff Chaos, Contract Pricing Leaders Thrive

Your contract pricing structure may hide significant costs. It might be time to redo yours. Anyone who's done a home renovation knows it takes forever. Updating your contracts pricing is kind of like that, but the longer you wait, the more it eats into your profits and causes headaches. (Part 1 of a 2-part series)

October 3, 2025

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Editor's note: This is the first of a two-part article series. See Part 2 here.

Walk into any wholesale distributor's executive meeting this month, and the conversation sounds surprisingly similar: CFOs presenting margin compression data; Sales directors explaining why "some big customers are pushing back harder than ever"; Operations teams managing supply cost increases that outpace contract adjustment clauses by 3-to-1. The common thread? Contract structures designed for stable markets now working against distributors in volatile conditions. While leadership debates quarterly price reviews…

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