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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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But don’t you see increased competition negatively impacting margins?

I’ve been doing this for 25 years. And if you look at our gross margins, they’ve been unaffected by new competitors for 25 years. I don’t want to sound arrogant, but we believe that customers at the end of the day choose the distributor they buy from based on value received. And we recognize that it takes an investment in SG&A that leads to a higher margin expectation by the customer. New competitors is something we have been used to for 25 years.

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