Al Bates, president of Profit Planning Group, is arguably the preeminent expert on profitability in wholesale distribution companies. For decades his company has performed annual statistical programs, profitability studies and industry benchmarking for many associations (PAR reports) and companies.

He coined a phrase a few years back that seems especially appropriate in the erratic economy we are in today – the cost of goods not sold.

It’s a great term that describes so well the core growth issues every distributor faces now. Some months are great, others are flat. Even in the sectors where growth has been strong, most don’t ...