How are FMCG profit margins distributed across the supply chain?

2018-12-08T14:05:49-07:00By |Categories: Downloads, Resellers|Tags: , , , , , , , |

Working from SRP (Suggested Retail Price) backwards, I see the following for FMCG profit margins: Anchor price/SRP: Start with SRP to your most expensive channel - which represents your top-most anchor price. The markup from you as vendor to retailer is 50-60% to the specialty/top priced retailers. For non-specialty channels - like drug, mass, grocery, club, [...]

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What are Whole Foods Market markup/margin numbers?

2018-12-08T13:55:32-07:00By |Categories: Downloads, Resellers|Tags: , , , |

This is a question I received via a discussion thread and I am reposting my contributions to the thread here. As a rule of thumb, natural.organic is always a 50% margin. If selling through UNFI, Tree, etc. there might need to be another 15% added in for them, for a total margin of 65% to WFM, [...]

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Change the distribution structure for competitive advantage in consumer products

2016-11-24T19:37:48-07:00By |Categories: Strategy|Tags: , , , , , , , |

Take a look at the following back-of-the napkin P&L.  This is from an actual early-stage business.   The product retails for $40 and wholesale cost is $20, which is the gross revenue to the business.  COGS is fairly hefty because the business is small and does not yet have the volume to bring down its [...]

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