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Do you have a method for correcting for distribution mark-ups?

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Written by Shawn Bradley
14 June 2021

In short, no.  We benchmark our client’s input data at whatever ‘prices’ they provide.  So if their entire spend is sourced through distribution – then the resultant characterization will reflect whether this is ‘highly competitive’ or ‘not so much’.  Unfairly priced outliers will still be exposed and the same negotiating methodology applies.  The analogous question can be asked of mark-ups from your manufacturing partners.

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