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Distributor Margin
Definition
The profit a distributor earns by reselling products to retailers, calculated as the difference between the distributor’s selling price and their cost of goods from the manufacturer. Distributor margin is typically expressed as a percentage of the selling price.
How It's Calculated
(Distributor selling price − Distributor cost) ÷ Distributor selling price.
Example
A distributor buys sparkling water for $10 per case and sells it to retailers for $14, earning a distributor margin of 28.6%.
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