Distributor Profitability – How much margin to give to a distributor?

Assume you're a brand or a manufacturer trying to select a distributor for your business and the terms you'll be providing are a gross-margin of 5%, zero credit period (the credit period for the distributor is zero days from the manufacturer) and the average costs for the distributor is 2%. The distributor has to extend …

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High margin, High volume, High velocity – Which do you prefer?

Let's say we have three products: high margin and low volume, low margin and high volume, and low margin and fast selling. Which product do you want to sell as an entrepreneur? Generally, the most common answer is that we should sell the highest margin product. But, from an Return on Investment (ROI) or Return …

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