Question

what is the profit margin of lux, dove, dettol, lifebuoy, pears soaps to manufacturers, wholesalers, retailers?

Answer 1

Of course it depends on products and distribution channels.
Let’s take the example of a shirt sold at a multi-brand store for 150$Production/factory cost + shipping : 0–10$Sold to a brand for 20$ ( x2+ margin for the factory)Sold to a distributer/wholesaler for 40$ ( x2+ margin for brand)Sold to a multi-brand retailer for 60$ ( 30% margin for the distributer)Sold to a consumer for 125$, and 150$ incl. tax (x2+ margin for the retailer)Of course those are gross margins, necessary to cover the costs at each step: Manufacturing equipment (for factories), Marketing (for brands), sales team (for distributers), rent and employees (for retailers)If you want to go deeper in the functioning of the wholesale industry, I have written a white paper on the topic. You can get it here for free: http://goo.gl/uUHevLSource: http://goo.gl/uUHevL29.5k Views · 15 UpvotesRelated Questions