Understanding PTR (Price to Retailer) and PTS (Price to Stockist) is crucial for accurate pricing, margin planning, and profitability in the pharmaceutical business. Here's how it all works:
PTR is the rate at which the medical retailer purchases medicine from the stockist or distributor.
Formula:
PTR = (MRP - (MRP × Retail Margin / 100)) / (1 + (GST / 100))
PTS is the rate at which the stockist purchases medicine from the pharmaceutical company.
Formula:
PTS = PTR - (PTR × Stockist Margin / 100)
Retail Margin and Stockist Margin are the profit percentages earned by the retailer and stockist respectively. These margins play a vital role in setting profitable, competitive prices.
Retail Margin Formula:
Retail Margin = ((MRP - PTR) / MRP) × 100
Stockist Margin Formula:
Stockist Margin = ((PTR - PTS) / PTR) × 100
Our PCD Calculator simplifies these complex calculations, helping you: