Profitability in distribution isn’t just about selling more—it’s about pricing smarter. Yet, many distributors unknowingly let revenue slip through the cracks due to outdated or manual cost update processes. When standard costs aren’t consistently refreshed, the impact on margins can be significant.
Could This Be Happening in Your Business?
🔹 Relying on a single person to handle standard cost updates, only to face chaos when they leave.
🔹 Applying blanket price increases to cover fluctuating costs, risking lost sales and customer trust.
🔹 Failing to adjust for hidden cost changes like tariffs or supplier fluctuations, eating into margins.
These aren’t just inefficiencies—they’re silent profit killers. And they happen more often than most distributors realize.
A Real-World Wake-Up Call: When Cost Updates Go Wrong
One industrial distributor thought they had cost updates under control—until a key employee left. With no process in place, costs went unadjusted for months. By the time the issue was identified, they had already lost millions in margin leakage.
Another distributor, overwhelmed by frequent supplier changes, took a broad-stroke approach: a 10% increase across the board. The result? Overpriced products that drove customers away, while others remained underpriced, cutting into profits.
These costly mistakes aren't rare—they’re common. The good news? They’re also preventable.
Smarter Cost Updates, Better Margins
Distributors who automate standard cost updates are seeing:
✅ 80-100% reduction in manual data entry
✅ Elimination of outdated pricing errors that previously cost them millions
✅ Stronger margins by ensuring costs stay accurate and competitive
One distributor who made the switch now updates costs without lifting a finger—protecting profits and eliminating hours of tedious work.
What’s the Real Cost of Doing Nothing?
If manual cost updates are still part of your process, it may be time to rethink your approach. What’s the hidden cost of inaction?
👉 Read the case study to see how automation helped a distributor regain control—and boost profitability.
