Are You Losing Money By Calculating Margins Wrong?

I spent time on Friday helping a client update spreadsheets and Excel reports that used an incorrect formula to calculate the margin on bids for construction jobs. While this particular client was looking for a margin of 25%, he was actually getting one closer to 20%. On a $100,000.00 bid, that can be the difference …

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Sell-in, Sell-out and Sell-through

For a retailer such as Amazon or Wal-Mart: Sell-in: how many units of a product is a manufacturer selling into the retailer Sell-out: how many units of a product is selling out to the customer (from the retailer) Sell-through is the same as sell out. They just invented it to confuse you. For a manufacturer: …

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Calculating Distributor or Dealer ROI

This is a post that is written on gyaanokplease.blogspot.com and the link to the original article is here. I just cannot emphasize enough about how well this article has been written and hence I've included even some of the comments. Thanks to gyaanokplease for this post. So probably the first thing that your distributor/dealer/stockist is …

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How the visibility budgets are used for price undercutting in FMCG?

If you speak to any Territory Sales In-charge or Manager (TSM) of a large FMCG company, they are going to mention one huge problem called price undercutting that affects their daily work. In an earlier post, I have written about how the wholesale trade leads to price undercutting. In this post, I am going to write about …

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How Price Undercutting happens via Wholesale Trade?

Wikipedia defines price undercutting as: 'Price cutting, or undercutting, is a sales technique that reduces the retail prices to a level low enough to eliminate competition'. It is obvious that price under-cutting happens mostly to boost volume sales. This article is about how undercutting works in the context of Indian FMCG. Brief Overview of the …

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