Retailer’s Margin

Any professional, new in sales and marketing, faces a common challenge of calculating various margins (e.g. Retailer’s margin, distributor’s margin, wholesaler’s margin etc.) Let us have a quick look on the Retailer Margin today.

Retailer’s margin is also known as gross margin and is expressed as a percentage of retailer’s selling price.

A practical example would hold good to explain. Let's say brand CRUNCH sells biscuits. CRUNCH sells a 100g packet of biscuit to retailer at INR 40, Retailer sells the same pack to consumer at INR 50. Let’s say, the retailer pays 18% tax (e.g. sales tax, GST etc.) on biscuit category. Now how to calculate the retailer’s margin? The attached chart is self-explanatory.

Hope this small post will serve as a ready reckoner.
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