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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?