Distributor Margin Calculator (Bangladesh)
Compares the distributor price with the dealer price and shows the margin per unit plus the margin percentage after transport cost.
Recent
Formula
How the calculation works
The tool adds the per-unit transport cost to the distributor price to get the true cost of each unit.
It then subtracts that cost from the dealer price to return the margin earned on one unit.
Finally it divides the margin by the total cost and multiplies by one hundred to show the margin percentage.
Common mistakes
- Forgetting transport cost, which turns an apparently good margin into a much smaller real one.
- Comparing the dealer price with the distributor price alone and calling the difference a true profit.
When to use it
- Set a dealer price that still protects a healthy margin once transport has been paid.
- Review each product line and find the ones whose margin percentage has slipped too low.
Worked example
Distributor price 100, dealer price 125 and transport 5 give a total cost of 105, a margin of 20 taka and a margin of 19.05 percent.
Common questions
What counts as a healthy distributor margin?
In Bangladesh a margin of about 10% to 20% over landed cost is common for fast-moving goods, so 19% here sits in the healthy range.
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