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    Distributor RoI

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    This document provides a formula for calculating return on investment (ROI) for distributors. ROI is calculated as Returns divided by Net Investment. Returns equals Earnings minus Expenses, where Earnings is the gross margin percentage for fast-moving consumer goods companies and Expenses include direct expenses like salesmen salaries and indirect expenses allocated based on the distributor's contribution to total company turnover.

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    Distributor RoI

    Uploaded by

    arch
    164 views2 pages
    This document provides a formula for calculating return on investment (ROI) for distributors. ROI is calculated as Returns divided by Net Investment. Returns equals Earnings minus Expenses, where Earnings is the gross margin percentage for fast-moving consumer goods companies and Expenses include direct expenses like salesmen salaries and indirect expenses allocated based on the distributor's contribution to total company turnover.

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    the ROI of distributors

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    This document provides a formula for calculating return on investment (ROI) for distributors. ROI is calculated as Returns divided by Net Investment. Returns equals Earnings minus Expenses, where Earnings is the gross margin percentage for fast-moving consumer goods companies and Expenses include direct expenses like salesmen salaries and indirect expenses allocated based on the distributor's contribution to total company turnover.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    164 views2 pages

    Distributor RoI

    Uploaded by

    arch
    This document provides a formula for calculating return on investment (ROI) for distributors. ROI is calculated as Returns divided by Net Investment. Returns equals Earnings minus Expenses, where Earnings is the gross margin percentage for fast-moving consumer goods companies and Expenses include direct expenses like salesmen salaries and indirect expenses allocated based on the distributor's contribution to total company turnover.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 2

    Distributor RoI

    Formula
    RoI or Return on Investment = Returns/ Net Investment

    Returns = Earnings – Expenses

    Earnings = Gross Margin that the dealer enjoys (Usually 6% - 8% in FMCG companies)

    Expenses = Direct Expenses + Indirect Expenses

    Direct Expenses = Salary of Exclusive Salesmen = 1*xxxx = xxxx per month


    Indirect Expenses for Organization=
    ( Contribution of Organization’sTurnover to Total Turnover) * Total Indirect Expenses
    Total Indirect Expenses = Godown Rent + Manager’s Salary + Miscellaneous Expenses

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