Compare channel margins at each level: MRP → retailer price → distributor price. See who earns what across the FMCG chain.
Retailer margin is usually quoted off MRP: margin % = (MRP − purchase price) ÷ MRP. It's the number a kirana owner uses to decide between two competing brands on the same shelf.
Distributors quoting retailer margin should remember schemes change the effective number: a 10+1 free scheme adds roughly 9% to the retailer's effective margin without touching the invoice price.
A 10+1 scheme means the retailer pays for 10 and sells 11 — cost per unit drops ~9%, so a 12% invoice margin becomes ~20% effective. Compute per-unit landed cost including free goods before comparing brands.
In Indian GT practice, retailer margin is conventionally quoted on MRP. If the retailer discounts below MRP, their realised margin shrinks — the quoted margin is the ceiling, not the guarantee.
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