It took me a long time to see this clearly. Your best supplier is usually your worst margin.
The suppliers with the best brand recognition are often the ones giving you the worst margin because they already sold the customer before you did. I pull gross margin by line to see which suppliers actually need me, and which ones are just counting my money.
The good ones are easy to spot. Beautiful catalog. Trained reps. National brand recognition. Customers asking for them by name.
That looks like a great partner. It usually isn’t.
Suppliers who are good at marketing have already done the heavy lifting. ++The customer was sold before you ever picked up the phone.++ So they will not let you mark it up. They have set the price. They have set the expectation. And quietly, they are counting your money.
The line card worth being proud of is the one full of suppliers who need you. Technical product. Regional reach. Smaller marketing budget. That is where your work actually shows up in the margin.
I am not saying drop the big names. They open doors.
I am saying don’t confuse the supplier you love bragging about with the supplier who is paying for your future.
Pull your top 20 lines tomorrow. Sort by Gross Margin %.
Which suppliers are counting on you, and which ones are counting your money?