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2 | Instructions | |||||||||||||
3 | This resource is designed to help you accurately calculate margins and pricing for selling wholesale (so you actually make $). | |||||||||||||
4 | If you have current pricing, start with the "Current Pricing Calculator" and input the numbers in purple. Then, move to the "Ideal Pricing Calculator" to see what numbers would look like if the key retail players got the ideal margin they would like. | |||||||||||||
5 | www.productandprosper.com | If you don't have current pricing, start with the "Ideal Pricing Calculator" and input your ideal margin numbers in purple. | ||||||||||||
6 | ||||||||||||||
7 | Current Retail, Wholesale, & Distributor Pricing Calculator | Ideal Retail, Wholesale, & Distributor Pricing Calculator | ||||||||||||
8 | Notes | Color Code | ||||||||||||
9 | Input Data | Only change these numbers | Input Data | Notes | Color Code | |||||||||
10 | Per Unit | Per Case | % Margin is within the ideal | COGS per Unit | $ 2.00 | Only change these numbers | ||||||||
11 | Retail Price (MSRP) | $ 10.00 | $ 120.00 | % Margin is lower than ideal | Units per Case | 12 | ||||||||
12 | Wholesale Price (PTR) | $ 5.00 | $ 60.00 | % Margin is higher than ideal | ||||||||||
13 | Distributor Price (PTD) | $ 3.50 | $ 42.00 | Brand Gross Margin (DSD) | 60% | Ideal DSD margin between 40-60% | ||||||||
14 | Units per Case | N/A | 12 | Distributor Gross Margin | 30% | Expected margin between 25-30% | ||||||||
15 | COGS | $ 2.00 | $ 24.00 | Retailer Gross Margin | 40% | Expected margin between 40-60% | ||||||||
16 | Trade Marketing Spend (%) | 15% | 15% | |||||||||||
17 | Broker Commission (%) | 5% | 5% | If no broker, put 0 | Trade Marketing Spend | 15% | Retail promos/discounts; Set aside 15-30% | |||||||
18 | Broker Commission (%) | 5% | Set aside 5-20% | |||||||||||
19 | Output Data | |||||||||||||
20 | Per Unit | Per Case | Gross Margin (%) | Notes | Output Data | |||||||||
21 | Retailer Gross Margin | $ 5.00 | $ 60.00 | 50.0% | Per Unit | Per Case | Gross Margin (%) | Notes | ||||||
22 | Retail Price (MSRP) | $ 8.33 | $ 100.00 | |||||||||||
23 | If go to retailer via distributor | Retailer Gross Margin | $ 3.33 | $ 40.00 | 40.0% | |||||||||
24 | Distributor Gross Margin | $ 1.50 | $ 18.00 | 30.0% | Wholesale Price (PTR) | $ 5.00 | $60.00 | |||||||
25 | Brand Gross Margin w/ Distributor | $ 1.50 | $ 18.00 | 42.9% | Distributor Gross Margin | $ 1.50 | $ 18.00 | 30.0% | ||||||
26 | Trade Marketing Spend | $ 0.53 | $ 6.30 | 15.0% | Retail promos/discounts | |||||||||
27 | Broker Commission | $ 0.18 | $ 2.10 | 5.0% | If go to retailer via distributor | |||||||||
28 | Brand Net Margin w/ Distributor | $ 0.80 | $ 9.60 | 22.9% | Distributor Price (PTD) | $ 3.50 | $ 42.00 | |||||||
29 | Brand Gross Margin w/ Distributor | $ 1.50 | $ 18.00 | 30.0% | With distributor | |||||||||
30 | If go to retailer direct-store-delivery (DSD) | Trade Marketing Spend | $ 0.53 | $ 6.30 | ||||||||||
31 | Brand Gross Margin | $ 3.00 | $ 36.00 | 60.0% | Direct-store-delivery (DSD) | Broker Commission | $ 0.18 | $ 2.10 | ||||||
32 | Trade Marketing Spend | $ 0.75 | $ 9.00 | 15.0% | Retail promos/discounts | Brand Net Margin w/ Distributor | $ 0.80 | $9.60 | 22.9% | With distributor | ||||
33 | Broker Commission | $ 0.25 | $ 3.00 | 5.0% | ||||||||||
34 | Brand Net Margin (DSD) | $ 2.00 | $ 24.00 | 40.0% | If go to retailer direct-store-delivery (DSD) | |||||||||
35 | Brand Gross Margin | $ 3.00 | $ 36.00 | 60.0% | DSD | |||||||||
36 | Trade Marketing Spend | $ 0.75 | $ 9.00 | |||||||||||
37 | Broker Commission | $ 0.25 | $ 3.00 | |||||||||||
38 | Brand Net Margin (DSD) | $ 2.00 | $24.00 | 40.0% | DSD | |||||||||