17min chapter

Odd Lots cover image

Brad Jacobs Plans to Make Billions in the Building Supply Industry

Odd Lots

CHAPTER

Importance of Pricing Power in New Distribution Business

In this chapter, they discuss the importance of pricing power in the new distribution business they are starting. They compare it to the freight brokerage market, where lowering prices initially to gain market share led to customers easily switching platforms when prices were raised. However, in building product distribution, the strategy is to lower procurement costs by leveraging scale and passing along some savings to the end user.

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