Hi,
NAW and MDM just published the largest study on data-driven decision-making just published the largest study on data-driven decision-making ever done in distribution — 426 senior leaders across 19 sectors. One finding stopped me cold.
Here's what they found on pricing:
- 73% of distributors expect a 2% or greater gross margin lift
- Only 16% have actually achieved it
- 65% report no improvement at all
That's a hard number. Nearly nine in ten distributors chasing better pricing haven't crossed the 2% mark.
Then I looked at our data:
Every one of you is above that benchmark. As of May 2026, gross margin lift across our active customer base ranges from 2.2% to 5.3%, with several customers exceeding 9% inside their first six months.
You're not chasing the benchmark. You crossed it months ago.
Why this matters going into Q3
It's easy to read a research report and move on. But this data says something about the competitive landscape — and your place in it.
The 84% who haven't hit 2%+ aren't standing still. Between 58% and 61% expect to reach scaled use within the next 12 months. The lead you hold today won't stay this wide.
Right now you have what they don't: operating data, proven adoption, a working pricing cadence, and six months of performance to build on.
The report closes with a recommendation worth flagging: study distributors further along in their journey. You are that distributor. For Q3, the question isn't whether this works for your business — that's settled. It's where the next layer of value comes from.
What to look at before Q2 closes
We're closing out Q2 this week. Three things are worth a look before Q3 planning locks:
- Your GM% direction, not just the headline. Where were you in December? Where are you now? The question is how to defend and extend the gains.
- The one variable you haven't optimized. For some of you its coverage — more SKUs on the platform. For others, team adoption. For a few, it's the second piece: customers running pricing who haven't activated inventory optimization, or the reverse.
- A working Q3 session, not a check-in. A real conversation about what's next.
I'm booking July QBRs now. Most customers want to dig into one of these:
- Where the next 1–2 points of margin lift come from
- Activating the second piece — pricing or inventory optimization
- Adoption and coverage for stalled SKUs
- Building the internal case for expanded deployment
If any of those resonate, let's get it on the calendar.
Just a straightforward conversation about what's achievable from here.
Nelson Valderrama
Founder & CEO, Intuilize
nelson@intuilize.com
Contact us at support@intuilize.com for any questions.
Let’s uncover the full potential of your business together!
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