How do you calculate the landing price for retailers and distributors on a markup basis?

Question

Accepted Answer

To calculate landing price to retailer and distributor on mark up basis, determine the cost price and apply the desired mark up percentage.

Determine the cost price of the product
Decide on the desired mark up percentage for the retailer and distributor
Calculate the mark up amount by multiplying the cost price with the mark up percentage
Add the mark up amount to the cost price to get the selling price
The selling price is the landing price for the retailer and distributor

Accepted Answer

To calculate the landing price to the retailer and distributor based on a mark-up basis, follow these steps:

Determine the Cost Price (CP) of the Product:

The cost price is the price at which the company manufactures the product. This includes all costs incurred in production, such as raw materials, labor, overheads, and any applicable taxes.
Decide on the Desired Mark-Up Percentage:

The mark-up percentage is the amount added to the cost price to determine the selling price to the distributor or retailer. This percentage usually covers additional costs like distribution, marketing, and profit margin.
Calculate the Selling Price (SP) to Distributor:

Selling Price to Distributor = Cost Price + (Cost Price * Mark-Up Percentage / 100)
Calculate the Selling Price (SP) to Retailer:

Selling Price to Retailer = SP to Distributor + (SP to Distributor * Mark-Up Percentage / 100)
Here's an example to illustrate:

Cost Price (CP) of the product = $10
Mark-Up Percentage = 20%
Calculations:

Selling Price to Distributor = $10 + ($10 * 20 / 100) = $12
Selling Price to Retailer = $12 + ($12 * 20 / 100) = $14.40
Therefore, in this example, the company would sell the product to the distributor at $12 and to the retailer at $14.40.

It's important to adjust these calculations based on your specific cost structures, market conditions, and desired profit margins.

Accepted Answer

Quantity and some percentage

Accepted Answer

Company Manufacturing Products allocated authorised Distributor s and Retailers. Sales Executive Roles Product Landing cost as Product quality , Quality of measuring printed cost to at Retail / Distribution price as Company market process as Sales Offers/ Promotion s/ % to customise at sustain Market Competitor Product Price.

Accepted Answer

billing cost to distributor from company Retail price= distributor landing price + distributor margin

Accepted Answer

billing cost to distributor from company Retail price= distributor landing price + distributor margin

Accepted Answer

Parle calculate the landing price to retailer.and distributor on mark up basis

Accepted Answer

MRP/1.15

Example mrp 10/1.15

Accepted Answer

किसी भी खुदरा उत्पाद के लिए मूल्य निर्धारित करने से पहले, यह निर्धारित करें कि आप बाज़ार के किस खंड पर कब्जा करने का प्रयास कर रहे हैं और आप कहाँ फिट हैं। उदाहरण के लिए, क्या आप एक डिस्काउंट ब्रांड , एक समकालीन ब्रांड या एक डिज़ाइनर ब्रांड हैं?

यदि कम कीमत बिंदु आपका प्रतिस्पर्धात्मक लाभ है, तो अपना शोध करते समय इसे ध्यान में रखें। यदि आपके लक्षित ग्राहक अधिक बजट के प्रति जागरूक हैं या उच्च गुणवत्ता वाले उच्च अंत उत्पाद की तलाश में हैं, तो बाजार अनुसंधान करते समय इन कारकों को भी ध्यान में रखना चाहिए।

Accepted Answer

I started my answer by probing what margin they offer to their customers (retailers) and what margin is given to their distributors. They answerd 12% on parle -g and 15% on other biscuits brands. So I give an example of rs 5 mrp.the calculation goes as follows. Mrp parle-g  5÷1.12=4.46 so 4.46 rs would be landing cost to retailer and another 5% margin of distributor would be on 4.46÷1.05=4.24 rs. So landing price would be rs 4.24 for distributors.

How do you calculate the landing price for retailers and distributors on a markup basis?

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