How to calculate distributor and retailer margin?

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Accepted Answer

Distributor and retailer margin can be calculated by subtracting the cost of goods sold from the selling price.

Distributor margin is the difference between the price at which the distributor purchases the product and the price at which they sell it to the retailer.
Retailer margin is the difference between the price at which the retailer purchases the product from the distributor and the price at which they sell it to the end customer.
The formula for calculating distributor margin is: (Selling price to retailer - Cost of goods sold) / Selling price to retailer x 100%
The formula for calculating retailer margin is: (Selling price to end customer - Selling price to retailer) / Selling price to end customer x 100%
For example, if a distributor purchases a product for $10 and sells it to a retailer for $15, their margin is 33.33%. If the retailer then sells the product to the end customer for $20, their margin is 25%.

Accepted Answer

Distributor and retailer margin can be calculated by subtracting the cost of goods sold from the selling price.Distributor margin is the difference between the price at which the distributor purchases...
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Accepted Answer

Distributor and retailer margin can be calculated by subtracting the cost of goods sold from the selling price.

Distributor margin is the difference between the price at which the distributor purchases...read more

Accepted Answer

Distributor and retailer margin can be calculated by subtracting the cost of goods sold from the selling price.

Distributor margin is the difference between the price at which the distributor purchases...read more

How to calculate distributor and retailer margin?

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