Most mid-market distributors leak 2-5% of gross margin to rep discounting, stale contracts, and vendor cost pass-through lag. We audit it in 48 hours, then run continuous controls that stop the leak, with every recovered dollar traceable to a specific transaction.
The typical mid-market distributor is leaking 2-5% of gross margin through these four channels. The audit quantifies each one in dollars, with specific transactions behind every number.
30-40% of margin leakage. Reps discount to close, defaults stick, and the floor drops. By quarter-end nobody remembers what the list price was supposed to do.
25-30% of leakage. Multi-year contracts priced against last year's cost curve. Vendor raises 8%, your price holds, your GM shrinks. Nobody flags it because nobody reads contracts monthly.
20-25% of leakage. Vendor updates land in the ERP, but sell prices don't move for weeks. Every day the spread compresses, and every order booked in that window is underwater.
10-15% of leakage. Promos that stop producing lift but keep running. Rebate thresholds reps miss. Net pricing drifts below intended floor and takes a quarter to see.
Assumes 2-5% GM leakage against revenue base, 60% recovery rate in year one (conservative, most distributors recover 70-80% once Quote Guard and Agreement Watch are live).
| Revenue | Estimated Leakage | Year-One Recovery | Payback on $2,500/mo |
|---|---|---|---|
| $25M | $500K-$1.25M annual leakage | $300K-$500K recovered | ~35 days |
| $50M | $1M-$2.5M annual leakage | $750K-$1.25M recovered | ~18 days |
| $100M | $2M-$5M annual leakage | $1.5M-$2.5M recovered | ~9 days |
Every recovered dollar is traceable to a specific transaction, rep, agreement, or promo, auditable back to the ERP.
Pricing analytics tells you what leaked. Controls prevent it from leaking in the first place. Four live controls, each with a full audit trail.
Every quote checked against contract, tier, matrix, and current cost. Out-of-policy discounts flagged before they leave the rep's screen. Full approval audit trail. No more finding out at month-end.
Every active agreement continuously monitored against vendor cost changes. When a pass-through is due, you get an alert with the dollar impact and the renegotiation target, not a quarterly surprise.
Every promo measured in real time against baseline. When lift stops, you get a kill-or-extend recommendation with the actual numbers. Finance owns promo spend again.
Rep-level, customer-level, SKU-level discounting trends with deviation alerts. Not surveillance theater, a documented audit trail of pricing discipline that stands up to a board review.
SOC 2 Type II · Read-only ERP integration · Segregation of duties enforced
The agent is layered on top of your ERP, not embedded inside it. No change to revenue recognition. No change to audit posture. Your auditor gets more evidence, not less.
Gross margin, directly. Recovered leakage flows through COGS, no revenue recognition change, no new line items. Platform cost is opex and is typically dwarfed 15-25x by year-one GP captured.
Your ERP tells you what leaked last quarter. The agent catches it before it books. Inline at the quote, live against vendor cost updates, continuous monitoring on agreements. Dashboards are retrospective. Agents are preventive.
They sell enterprise pricing platforms, six-figure ACVs, 6-12 month implementations, dedicated pricing teams to operate. We're purpose-built for mid-market distributors: weeks to deploy, no pricing team required, no data-cleanup prerequisite.
No. We ingest what you have, contracts in PDF, overrides in spreadsheets, price lists in the ERP, and normalize it during onboarding. The data cleanup is a byproduct of the deployment, not a prerequisite.
It strengthens both. Every approval, override, and exception generates an audit-ready log. Segregation of duties improves because the agent enforces policy before humans make exceptions. SOC 2 Type II.
Before/after GM by customer segment, recovered $ by leakage source, approval exception rate, agreement compliance %. All traceable to specific transactions. Every claim is auditable back to the ERP.
60-day paid pilot with clear GP $ targets. No long-term contract. If the agent isn't producing GP recovery above platform cost, you stop. Explicitly structured to make payback visible before any renewal decision.
A board-ready one-pager: total margin leakage estimate, top 10 underwater agreements, rep discount benchmarks vs. peer distributors, and quick-win renegotiation targets with dollar amounts. Yours to keep regardless of whether you continue.
Free
48-hour margin audit. Read-only ERP integration. Full report: leakage estimate, underwater agreements, rep discount benchmarks, renegotiation targets.
Yours to keep. No commitment.
Book the Audit$2,500/month
Quote Guard, Agreement Watch, Promo Monitor, Drift Detector. Continuous monitoring, alerts, and audit trail. Monthly margin recovery review.
30-60 day payback at $20M+ revenue
Model Your RecoveryNo setup fees · No long-term contracts · 60-day paid pilot on Margin Intelligence · Stop any time
48-hour read-only audit. Board-ready one-pager: total leakage estimate, top 10 underwater agreements, rep discount benchmarks, quick-win renegotiation targets with dollar amounts. Yours to keep regardless.