Find your profit, margin %, and markup % from cost and selling price. Essential for pricing decisions in FMCG distribution and retail — margin and markup are not the same number.
Margin and markup are cousins that get confused in every mandi negotiation. Margin is profit as a share of the selling price; markup is profit as a share of cost. A 25% markup is only a 20% margin — mixing them up quietly erodes profit on every SKU.
FMCG distribution runs on thin margins (4–8% for distributors, 10–25% for retailers depending on category), so knowing your true margin per SKU — after schemes and cash discounts — decides whether a line is worth carrying.
You buy at ₹80 and sell at ₹100: profit ₹20 → margin 20% (20/100) but markup 25% (20/80). Quote 'margin' to a brand and 'markup' to your accountant and you're describing the same rupees.
Margin = profit ÷ selling price. Markup = profit ÷ cost. Same profit, different denominators. Margin is always the smaller number, and it can never exceed 100%, while markup can.
No. Compute margin on ex-GST values — GST is a pass-through you collect for the government, not revenue. Comparing an inclusive purchase price against an exclusive selling price is the most common margin mistake.
Roughly 10–12% on fast-moving staples, 15–20% on personal care, and up to 25%+ on impulse/niche items. Distributor margins are thinner: 4–8% plus scheme incentives.
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