Pricing & Commercials
Modern Trade TOT (Terms of Trade) & Listing Fees
The contractual commercial framework governing sales to organized retail supermarket chains in India.
Detailed Definition & Industry Context
TOT (Terms of Trade) is the formal agreement between a brand and a modern trade retail chain (e.g., Reliance Retail, DMart, Nature's Basket). It defines base margins, listing fees per SKU per store, supply chain rebates, promotion participation fees, and credit terms (often 30–60 days).
Total Modern Trade Cost = Base Margin (25-35%) + Annual TOT Rebates (3-8%) + Listing / Shelf Rental Fees
Before entering 120 hypermarket doors, a founder must model whether a 32% margin + 4% marketing rebate + 45-day credit cycle is cash-flow viable compared to faster-cycling general trade distribution.
How SalesOrbit Supports This
We align your trade structure, distributor network, and retail execution to ensure sustainable channel margins and healthy product off-take.
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