What's the difference between Distributor Markup and Distributor Margin?

Distributor Margin & Markup

Markup: Some distributors will work on a markup, not a margin. If a distributor’s deal is a 10% markup, and your wholesale price is $3.30, the distributor’s price to the retailer would be $3.30*(1+10%) = $3.63. Pretty Easy.

Margin: But it isn’t always this easy. Some distributors work on a margin, not a markup. This calculation would be $3.30/(1-10%) = $3.67.

This may not seem like a huge difference, but remember that retailers and distributors have certain margin requirements they need to meet. Lack of understanding of this concept could result in your brand landing on the shelf with a suboptimal SRP.

Use the radio button to toggle between markup and margin depending on the distributor/retailer pricing you are modeling for accurate results.