Distributor vs Direct Sales Calculator
Compare the net margin of selling through a distributor versus building a direct sales team. Model the true economics of each channel.
The margin and control trade-off
Compare the net margin of selling through a distributor versus building a direct sales team. Model the true economics of each channel.
How each route is costed
- Distributor net per unit = distributor price - COGS - annual compliance and admin / units - market development fund (% of distributor revenue).
- Direct net per unit = direct price - COGS - freight - (sales travel + local marketing) / units - compliance and duties / units - (bad debt + FX hedging) x direct price.
- Net margin is net per unit over each route's own selling price. Compare the annual net figures too: a higher margin on a higher price is not the same as more profit.
Keep going
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Compliance and legal
The tools are free. QVINTA does the work.
QVINTA finds the shops that fit your brand, picks the product each one is missing and drafts the pitch, every week. Soon open for beta testing.