ALL ARTICLES AND INSIGHTS
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Your FOB Price Is Not Your Retail Price: Understanding Where the Margin Goes
Population and current market size are the easiest numbers to find, and the easiest to over-trust. Using sports nutrition across India, Japan, South Korea and China, this article shows why headline size misleads, and what a better first screen asks instead.
Your Offline and Online Prices Are Not Comparable Until the Brand Margin Is in Both
Offline and online prices can be calculated with the same discipline and still not be comparable. The difference may sit in where the brand’s own margin enters the model. Which channel looks cheaper once both builds carry the same definition?
A Lower FOB Cost Can Worsen Your Viability Ratio While Improving Your Price
Lower your FOB cost and the shelf price falls, yet the viability ratio can slip. The reason sits in which layers of the chain move with cost and which do not. What is your ratio actually telling you?
A 38% Distributor Margin Is Not a Number Until You Know What It Is a Percentage Of
Two distributors quote the same 38% margin. Applied to different bases, the shelf price differs by several dollars and the viability reading can change category. Before comparing proposals, what exactly is the percentage a percentage of?
What Share of the Shelf Price Does Your FOB Cost Still Represent?
A product can be strong, a distributor willing and demand genuine, yet the shelf price can still be uncompetitive. What share of the final price does your FOB cost represent in a new market, and who decides the rest?