WINTER 2025

40THE DISTRIBUTOR’S

40THE DISTRIBUTOR’S LINKNelson ValderramaNelson Valderrama is the CEO of Intuilize, a software Service platform that specializesin helping mid-sized distributors transform data into profits. With more than 22 years’experience as P&L manager executive for major PE firms and industrial distributors.Nelson has dedicated his career to help business uncover hidden competitive advantagesand unleash the power of data in the new Digital Economy. For more informationcontact by email nelson@intuilize.com or visit www.intuilize.comPRICING PRESSURES AND MARGIN BATTLES: HOWDISTRIBUTION LEADERS ARE FIGHTING BACKToday’s distribution landscape faces flatteningmarkets, intensifying competition, and threateningtariffs. As the fight to maintain margins has becomeincreasingly challenging as markets flatten andcompetition intensifies, successful distributors arefinding innovative ways to protect profitability whilestaying competitive. The answers might surprise you.In 2016, before the COVID-19 pandemic, globalinflation, and multiple geopolitical disruptions, Deloittesaid, “We are convinced that the next three to five yearswill see a marked bifurcation in the industry betweenthose visionary distributors who chart a new coursefor their businesses (distributors of the future) andthose who are constrained by orthodoxies and whosebusinesses face inexorable decline.” Eight years laterand one quarter through this century, distributors stillstruggle to meet and sustain preferred margins.Distributors face inflation pressures, trying toimprove operations, renegotiate vendor contracts, andoptimize inventory management. They have learned notto expect a “new normal” and to wrestle with supply chainvolatility. They want to meet and outperform e-commercecapabilities while they struggle to understand and affordadvanced technologies.How Distribution Leaders Are Fighting BackDistribution remains central to the world economy.You might think of it as the economy’s vascular orneurological system. While aiming for balance andCONTRIBUTOR ARTICLEfluidity, it’s prone to occasional clots and spasms. Forexample, continuing inflation offsets the growth potentialof 2-2.4% in 2025. This dynamic only encourages aworrisome “race-to-the-bottom” pricing policy.As someone with long experience in the industry, Isee opportunities here:¤ Customer Experience: It’s time to listen andintegrate customer feedback. Distributors need highperformanceCRM systems that drive customer servicewith time and information to enrich customer satisfactionand loyalty.¤ Added Value: Distributors can competemore effectively by providing value-added and afterpurchaseservices like bundling, on-site assembly, andcustomization. You can strengthen customer relationsand secure referrals to interested buyers.¤ Social Posture: Leading distributors haveincreasingly positioned themselves as contributors tosocial concerns. They are proactive in their concern forenergy efficiency and community well-being.CONTINUED ON PAGE 106