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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?