Pricing has long been one of distribution’s most powerful — and most misunderstood — margin levers. But since 2020, its role has fundamentally changed.

In the latest episode of the MDM Amplify Podcast, Zilliant Global Head of Pricing Advisory Jim Vaughn joins MDM Executive Editor Mike Hockett to break down how pricing science has evolved amid persistent inflation, tariff pressures and ongoing supply chain volatility.

The conversation highlights how pricing has moved from a periodic, reactive function to a continuous, strategic capability. As Vaughn explains, the pace of the market has accelerated — and distributors are under increasing pressure to make faster, more informed pricing decisions. That shift has been enabled in large part by advances in data analytics and AI, which are helping companies close the long-standing gap between market dynamics and pricing responsiveness.

Still, the episode makes clear that technology is not a silver bullet. While AI can dramatically speed up data analysis and improve visibility into market conditions, it cannot replace human judgment — particularly when it comes to setting strategy, evaluating tradeoffs and defining what actions a business should take next.

Vaughn also dives into several practical areas where distributors continue to struggle — including uncontrolled discounting, ineffective segmentation and the operational burden of managing overly complex customer price lists. He outlines how better peer group segmentation, shared pricing structures and a focus on customer value can help reduce margin leakage and improve pricing consistency.

The timing of this discussion is especially relevant. With economic uncertainty still elevated and cost pressures lingering, distributors are being forced to rethink how they balance competitiveness with profitability.

The bottom line: Modern pricing isn’t just about reacting to the market — it’s about understanding value at a granular level and using that insight to drive smarter, more consistent decisions.

Listen to the full episode via the audio player above, and you can find our complete podcast library here.