Query:
Sir I used to import protein powder and several other multivitamin from India. Previously I used to import from local party of —— (India) . Now i am including few item from Delhi buddy.
My question is I have imported goods in IC 30 and MRP is IC 250. Please let me know how can I managge margin in distribution of goods .
In nepal stockist margin is 10% and retail Margin is 16% plus i am planning to give 10% bonus.. Please let me know how can i manage distribution margin.
Response:
MRP is 250/-
Retailer margin: 16%
Stckiest Margin: 10%
Bonus: 10%
IC is 30/-
You didn’t mention tax structure so we are mentioning including of Tax price here.
First we have to calculate from retailer margin because retailer sell it at mrp.
Retail Price: MRP*100/(100+margin)
250*100 25000
———– = ———– = 215.52/-
100+16 116
Whole Sale Price : Retail Price*100/(100+margin)
215.52*100 21552
———– = ———– = 185.79/-
100+10 116
10% Bonus that you will provide; will be added in your costing.
30*10%= 3
Your costing will be 30+3=33/-
your margin will be: 185.79-33= 152.79 IC.
Hope this information will be helpful to you…