How to calculate Retailer Margin?


You have informed in your article, margin to retailers would be 20%, but recently one retailer said very confidently, that according to rule, retailer margin must be 23.8%, he threaten me to do complaint from drug inspector as I am giving him margin 20% of M.R.P( M.R.P-20%-5%discount+5%tax),
Please guide me what is rule as per law.
I am giving direct supply to Retailers.


In Article How to calculate Price To Retailer, Price To Stockist and Maximum Retail Price?, we will supposing all margins and taxes. They can vary place to place…

First of all I want to inform you that What margin you give to retailer doesn’t come under Drug Inspector’s reach. If you give him 15% margin only, then also DI can’t interfere in this matter.

May chemist/retailers union has fixed certain margin from their self but he can’t threaten you to complain to drug inspector. Its your wish to fix margin of retailers. Some wheres all retailers fixed their margin and don’t work less then it. Generally it varies from 18-25 percent.

Drug Inspector can collect sample, ask for invoice, from where you purchased, sale report, check documentation or any other formalities related to drug quality, efficacy, standards etc. Not related to margin or taxes. Taxes come under Sale tax Department.


Thanks for giving right guidance to me, can you tell me about salts, which are banned or going to be stop, & one thing more, please inform about schuedule H1 drugs.


List of Schedule H1 drugs check here: List of Schedule H1 Drugs

List of Drugs and molecules going to be banned check here: List of Banned molecules in India

Hope above information was useful to you…

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