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Start the year right by safeguarding your margin

redparalela.eu/en/how-to-safeguard-your-margin-before-the-year-begins/
A sales rep from a distribution company walking into a restaurant to negotiate the customer templates.

🔒How to safeguard your margin before the year begins

Many distributors start January negotiating against the clock. And that almost always means losing margin, accepting poorly thought-out terms or starting 2026 with less control than you would like.
Safeguarding your margin starts with one simple step: close your negotiation templates before the year ends.

Why it pays to do it now

When you work with closed templates:

    • You go into January with clear, agreed terms.
    • You avoid improvised negotiations that end in unnecessary concessions.
    • You gain margin visibility for the first quarter.
    • You strengthen your position with customers who tend to push hard at the start of the year.
    • You reduce the risk of accepting terms that will penalise you throughout 2026.

In short, it is about avoiding improvisation in the most delicate month of the year.
As we often say at Red Paralela in our sessions with distributors:
"Reaching January with everything agreed is the difference between defending your margin and giving it away."

Practical steps for a distributor

    1. List your key customers (the ones that really drive margin).
    2. Define what you want to achieve: final margin, rebates, services, exclusivities.
    3. Prepare clear, closed templates that are easy to sign off.
    4. Schedule meetings before Christmas. The sooner, the better.

This groundwork saves you trouble and protects your margins for months.

A friendly tip from Red Paralela

Red Paralela does not negotiate on your behalf or take part in your agreements, but we work alongside many distributors and we see the same pattern year after year:
those who get ahead negotiate better.

That is why we keep repeating this message: closing your templates before January is a small step with a huge impact on your 2026 margin.

If you want more practical tips to improve your distribution business,
stay connected to Red Paralela.

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