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CRN Exclusive: ScanSource CEO On How Consolidation Is Impacting Distribution

Value-added distributors are in many ways becoming more like broadline distributors, even as broadline distributors are becoming more like value-added distributors, ScanSource CEO Mike Baur told CRN.

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Why would broadline distributors target a market like point-of-sales equipment?

The reason they come into these markets, they being the broadline distributors, is because they want to make higher margins. And so why would we be worried about someone wanting to make high margins? It’s only when they want to come in and make low margins to dominate a market that we worry. But it’s not those markets that we are in. So we think it’s exciting. It means that the marketspace must be growing and valuable. So it’s a good thing.

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