Your Results
Your Net Revenue Per Unit
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Wholesale price minus broker commission, freight, and trade spend.
Your Gross Margin Per Unit
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Net revenue minus COGS. This is what you actually keep per unit sold.
Your Gross Margin %
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Gross margin as a percentage of your net revenue.
Implied MSRP
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The retail shelf price implied by your wholesale price and the distributor/retailer margins entered.
Distributor Sells to Retailer At
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The price the distributor charges the retailer.
Broker Commission Per Unit
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Dollar amount paid to your broker per unit sold.
How This Calculator Works
This calculator takes your suggested retail price and works backward through each margin layer, including retailer, distributor, and broker fees. It determines the net price your brand receives after all deductions. The tool helps identify the impact of different margin structures on your profitability.
When to Use This Tool
A CPG brand is launching a new snack product and needs to set competitive pricing while ensuring profitability across retail channels.
The tool helps model different margin structures to find a sustainable net selling price that supports brand growth and covers operational costs.
An established beverage brand wants to assess the profitability of selling through a new regional distributor versus their current national network.
By inputting specific margin agreements, the brand can compare net selling prices and identify which distribution channel offers better financial returns per unit.
A frozen food brand is considering partnering with a new broker and needs to understand the impact of their proposed commission structure on the brand's bottom line.
The calculator quantifies the exact per-unit cost of the broker's commission, allowing for informed negotiation and clear understanding of the net revenue.
Common Questions
How does this tool handle variable trade spend or promotional allowances?
The tool includes an input for trade spend as a percentage, allowing you to factor in promotional allowances or marketing contributions that reduce your net selling price.
Can I use this for different product sizes or SKUs?
Yes, input the per-unit values for each specific SKU or product size. The calculations are based on individual unit economics, making it versatile for your entire product line.
What if my brand does not use a broker?
If you don't work with a broker, simply enter '0' for the broker commission percentage. The tool will then calculate your net selling price based solely on retailer and distributor margins.
Does this calculator account for my Cost of Goods Sold (COGS)?
While this tool primarily focuses on calculating your net selling price after channel margins, it does not directly incorporate your Cost of Goods Sold (COGS). You would compare the calculated net selling price against your COGS separately to determine gross profit per unit.
Optimize Your CPG Pricing for Profitability
Guidance provides CPG brands with actionable insights and tools to master their financial operations. Make data-driven decisions to improve your margins and grow your business.
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