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Your Exit Strategy Begins with a Pricing Strategy
In this conversation with Bob Engle (former owner of API of New Hampshire) and Ralph DeHay (investment banker), the discussion centered on how disciplined pricing, strong management, and a healthy culture build long-term value—and set the stage for a successful exit.
More Articles
Profit2 AD HVAC-Plumbing Video
In this presentation, Profit2 examines margin performance across 28 HVAC distributors, identifying five pricing benchmarks that reveal where distributors can safely raise margins. Dave Roller explains how the most profitable companies differentiate on high vs. low-dollar invoices, customer-item spending patterns, and non-stock purchases. By focusing on lower-volume customers, C and D items, and infrequent sales, top-quartile distributors gain a significant margin advantage, enabling stronger earnings and reinvestment opportunities.
Profit2 AD Electrical Video
Profit2’s Paul Parsons and company founder Dave Roller share insights from over 300 wholesaler engagements, focusing on margin optimization strategies for electrical distributors. Their benchmarking study highlights five key pricing benchmarks — including differences in margins between large vs. small customers, invoice sizes, and incidental purchases. The data shows that top-quartile distributors consistently capture higher margins by strategically managing low-volume and incidental sales, resulting in measurable improvements in profitability.
Every Tariff Has a Silver Lining
You can use the cover of vendor cost increases to gain 3 to 4 extra margin points on thousands of "incidental" items. These make up 70% of the items your customers buy. They spend less than $150 a year per item and buy each item only 1 or 2 times a year. As a result your customers don’t watch ...
See You There! Profit2 Will Be Attending These Upcoming Events
Profit2 will be attending these conferences during the 2025 Fall Season. Be sure to look us up or schedule an appointment and meet us there.
Case Study – Start Slowly
Profit2 Works with HVAC Distributor to Increase System Price Utilization and Margin Client Profile: $75 million HVAC Distributor, 6 branches in a 3 state area Servicing Residential and Commercial Contractors 70% of sales are equipment and price-sensitive items Client used customer pricing to price about 15% of sales One corporate matrix to price all of remaining sales Sales force controls ...
Case Study – Play Defense First
Profit2 Works With Electrical Distributor to Overcome Sales Resistance and Increase MarginClient Profile:$90 million Electrical Distributor, 15 branches in 4 state areaServicing Residential & Commercial Contractor, Industrial & Utility CustomersClient uses combination of customer-specific and matrix pricingSales force traditionally has wide latitude in pricingThe client had a concentration of sales very typical for an Electrical Distributor:Over 2/3 of this clients ...
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See You There! Profit2 Will Be Attending These Upcoming Events
Profit2 will be attending these conferences during the 2025 Fall Season. Be sure to look us up or schedule an appointment and meet us there.
More Articles
Your Exit Strategy Begins with a Pricing Strategy
In this conversation with Bob Engle (former owner of API of New Hampshire) and Ralph DeHay (investment banker), the discussion centered on how disciplined pricing, strong management, and a healthy culture build long-term value—and set the stage for a successful exit.
Profit2 AD HVAC-Plumbing Video
In this presentation, Profit2 examines margin performance across 28 HVAC distributors, identifying five pricing benchmarks that reveal where distributors can safely raise margins. Dave Roller explains how the most profitable companies differentiate on high vs. low-dollar invoices, customer-item spending patterns, and non-stock purchases. By focusing on lower-volume customers, C and D items, and infrequent sales, top-quartile distributors gain a significant margin advantage, enabling stronger earnings and reinvestment opportunities.
Profit2 AD Electrical Video
Profit2’s Paul Parsons and company founder Dave Roller share insights from over 300 wholesaler engagements, focusing on margin optimization strategies for electrical distributors. Their benchmarking study highlights five key pricing benchmarks — including differences in margins between large vs. small customers, invoice sizes, and incidental purchases. The data shows that top-quartile distributors consistently capture higher margins by strategically managing low-volume and incidental sales, resulting in measurable improvements in profitability.
Every Tariff Has a Silver Lining
You can use the cover of vendor cost increases to gain 3 to 4 extra margin points on thousands of "incidental" items. These make up 70% of the items your customers buy. They spend less than $150 a year per item and buy each item only 1 or 2 times a year. As a result your customers don’t watch ...
Case Study – Start Slowly
Profit2 Works with HVAC Distributor to Increase System Price Utilization and Margin Client Profile: $75 million HVAC Distributor, 6 branches in a 3 state area Servicing Residential and Commercial Contractors 70% of sales are equipment and price-sensitive items Client used customer pricing to price about 15% of sales One corporate matrix to price all of remaining sales Sales force controls ...
Case Study – Play Defense First
Profit2 Works With Electrical Distributor to Overcome Sales Resistance and Increase MarginClient Profile:$90 million Electrical Distributor, 15 branches in 4 state areaServicing Residential & Commercial Contractor, Industrial & Utility CustomersClient uses combination of customer-specific and matrix pricingSales force traditionally has wide latitude in pricingThe client had a concentration of sales very typical for an Electrical Distributor:Over 2/3 of this clients ...