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    Pricing & Commercials

    PTR (Price to Retailer) vs. PTS (Price to Stockist) vs. MRP

    The foundational pricing waterfall used in Indian retail to determine retailer margin, distributor margin, and brand realization.

    Illustration of a planning ledger, a blank calculator and supply cartons
    Scope the work alongside stock and working capital.Illustration

    Detailed Definition & Industry Context

    MRP (Maximum Retail Price) is the final price printed on packaging inclusive of all taxes. PTR (Price to Retailer) is the price at which the retailer purchases the product from the distributor (excluding GST). PTS (Price to Stockist / Distributor) is the price at which the distributor buys from the brand.

    Formula / Structural Flow
    PTR = (MRP / (1 + GST%)) × (1 - Retailer Margin %)
PTS = PTR × (1 - Distributor Margin %)
    Practical Field Example

    For a ₹100 FMCG food item with 12% GST, base price is ₹89.28. With a standard 18% retailer margin, PTR is ₹73.21. With a 7% distributor margin, PTS is ₹68.08, leaving the brand with its net realization before freight and trade promotions.

    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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