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 …
Continue reading Distributor Profitability – How much margin to give to a distributor?
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 …
Continue reading High margin, High volume, High velocity – Which do you prefer?
Though I have no experience in pitching to the VCs, I have written this based on my theoretical knowledge, and based on the inputs given by some of my acquaintances. My experience always taught me that people always want things very plain and simple. Though there are a hundred things to take care of in …
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