1 Margin Point Matters.

Most regional distributors are structurally leaking 1–3 margin points annually.

This is an infrastructure problem.

Now consider this:

A 2-point structural leak at $25M equals $500,000 in annual gross profit erosion.

Over five years, that’s $2.5 million.

Most regional distributors are not losing on price.
They are losing through structural misalignment:

• Compensation rewarding the wrong behavior
• Incomplete category penetration
• Undisciplined territory coverage
• Aging receivables without accountability
• Lost accounts left untouched

These issues rarely appear dramatic month-to-month.

They compound quietly.

This is not a pricing problem.

This is an infrastructure problem.

And infrastructure determines competitive durability.