Distribution Channel Margin Calculator for a Startup

A business needs to understand its distribution channel and in particular how the total margin made on its products are allocated between the various partners. Understanding the channels allows a business to for example calculate a required manufacturing cost from a retail price or a wholesale price from a given cost.

This free Excel channel margin calculator can be used to calculate the margin at each step with the distribution process.

Last modified May 13th, 2019 by Michael Brown
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Target Costing and Selling Price

The target costing model is a method used by a business to determine the required manufacturing product cost necessary to achieve a given gross margin percentage based on a market driven selling price.

Last modified February 11th, 2019 by Michael Brown
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Pricing for Profit Calculator

When a business raises or lowers the selling price of its products the unit sales volume of the product changes.

This free pricing for profit calculator can be used to calculate the increase in unit sales volume needed to compensate for a change in selling prices while maintaining a constant gross profit level.

Last modified June 10th, 2019 by Michael Brown
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Gross and Net Profit Margin

The gross profit and net profit margins are used as measures of profitability. The gross margin indicates whether the products produced and sold by the business are profitable, whereas the net margin indicates the profitability of the entire business taking into account all expenses.

Last modified January 29th, 2019 by Michael Brown
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Effect of Sales Discount on Financial Projections

Offering a sales discount to customers reduces the selling price and gross margin percentage of a product. Unless there is a corresponding increase in the level of unit sales and revenue of the business then the gross margin of the business will be reduced.

Last modified January 29th, 2019 by Michael Brown
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Markup on Cost

Markup on cost and gross margin ratio are useful for monitoring trends and making comparisons with other businesses. In addition, depending on whether your starting point is cost price or selling price, they can be used as a management tool to control buying and pricing decisions within the business.

Last modified February 8th, 2019 by Michael Brown
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Coffee Shop Break Even Analysis

One of the most important things to know when starting a coffee shop or preparing a coffee shop business plan is how many coffees the business needs to sell each day in order to break even. With this figure to hand, it is possible to get an idea of the size of the premises needed, the number of coffee machines required and the number of staff necessary to operate the shop.

At break even, the profit from the coffee shop will be zero. When people discuss break even or break even point, they are simply referring to the level of revenue needed to cover the costs of operating the coffee shop business.

Last modified February 8th, 2019 by Michael Brown
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Bakery Gross Margin Percentage Calculator

Each type of product made in bakery has a gross margin which is the difference between the selling price and the cost of the product.

The gross margin is used to calculate the gross margin percentage which is an indication of how profitable a bakery product will be.

This bakery gross margin percentage calculator will help you to estimate the gross margin percentage of each product for use in the Financial Projections Template, when considering how to start a bakery business.

Last modified June 13th, 2019 by Michael Brown
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Microbrewery Gross Margin Percentage Calculator

Each type of beer brewed in a microbrewery has a gross margin which is the difference between the selling price and the cost of the batch. The gross margin is used to calculate the gross margin percentage.

This microbrewery gross margin percentage calculator will help you to estimate the gross margin percentage of each batch for use in the Financial Projections Template.

Last modified June 3rd, 2019 by Michael Brown
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