Ep. 40 – Stakeholders – Distributors
Startup Confidential
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Distributors Aren't Discriminating and Why They Should Concern You
Distributors monetize two things: moving case volume out of their warehouses and manipulating chargeback amounts. The first is their primary stated business model, and it has a frighteningly low net operating margin. It's the latter threat to their profits in non-pandemic environments that has created the shady and often unethical business of exaggerated outright fraudulent chargebacks. More regulation is needed to protect small businesses from this kind of nonsense.
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