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Best Ayurvedic Company in India

Best Ayurvedic Company in India

Profit margin in Ayurvedic Products

Profit margin is one of the important things to consider when we start any type of business. So, it is also essential for knowing profit margin in ayurvedic products if we are going to start ayurvedic business. Here we will discuss about how much profit you can earn in ayurvedic industry if you are going to start different types of ayurvedic business like manufacturing, marketing, distribution or retail store. First have a look at how you can start different type of ayurvedic businesses in India? How to start ayush (ayurvedic, yoga/naturopathy, unani, siddha and homoeopathy) products distribution business? How to start ayurvedic store? How to start selling herbal products online? How to start ayush manufacturing business? How to start ayush marketing business? Ayush Franchise Business Now come to the point about profit margin at different types of ayurvedic or ayush products. Profit margin is not fixed for all companies or all ayurvedic products. Profit margin varies company to c
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How to calculate Price to Retailer (PTR) and Price to Stockist (PTS) for an Ayurvedic Medicine Company’s Products?


If you own an ayurvedic marketing company or ayurvedic manufacturing company then fixing and calculating maximum retail price (mrp) for your products is a crucial step. Calculation about fixing MRP, we have calculated in our article: How to calculate Maximum Retail Price (MRP) including PTR/PTS of an Ayurvedic Medicine Company’s Products? In This article, we will calculate PTS, PTR, MRP calculation. 

Important Definitions related to MRP, PTR and PTS:

Definition of Maximum Retail Price:

Maximum retail price (MRP) is a maximum price of any product/service that can be paid by end consumer for purchasing or using it. It is included of all taxes.

Definition of Price to Retailer (PTR): 

It is the price at which at goods or services are billed to retail shop or store by wholesaler or stockist. 

Definition of Price to Stockist (PTS):

It is the price at which goods or services are billed to stockist/wholesale/distributor* by company or its CnF. 

Methods of Calculating PTR and PTS:

Here we will discuss about how you can calculate PTR and PTS from a given maximum retail price. 
In process of calculating maximum retail price, we also find PTS and PTR. But in this article we will calculate from given or already fixed MRP. We calculate PTS and PTR including GST and excluding GST. 
If you are calculating PTS and PTR including GST then you will not need to deduct GST from MRP. If you are calculating PTS and PTR excluding GST then deduct GST from MRP. 

You can calculate PTR and PTS with two methods.
1. By Based upon GST Factor
2. By Simple Calculation Method

Suppose we have a product having maximum retail price of 95/- 
Retailer Margin 20% 
Stockist Margin 10% 
GST 12% 

Based upon GST Factor:

First you need to deduct retailer margin from MRP. This will give a net value that in other words we can say PTR including GST like below: 

Formula used will be MRP*(1-Retailer Margin %) 
Net value = 95*(1-20%) = 76/- 

Price to Retailer (PTR) Calculation

Now calculate Price to retailer. Price to retailer (PTR) will be calculated by deducting GST value from above net. For that you need to first calculate GST factor value. Formula for GST factor calculation is finding below: 

GST Factor = (100+GST)/100 
GST Factor value = (100+12)/100 = 112/100 = 1.12 
PTR calculation formula = Net Value / GST Factor = 76/1.12 = 67.86/- 

Price to Stockist (PTS) Calculation:


Price to stockist will be calculated by deducting stockist margin percentage from retailer price. Formula for calculating price to stockist (PTS) is like: 
PTS calculation formula: PTR*(1 – Stockist Margin %) = 67.86*(1-10%) = 61.07/- 

Based upon Simple Calculation

Formula for calculating any price formula is Amount*100(100+margin). 
First we will calculate price to retailer then price to stockist. 

Price to Retailer:

For calculating price to retailer, ptr calculation formula will be MRP*100/ (100+retailer margin) 
PTR = 95*100/ (100+20) = 95*(100/120) = 95/1.2 
PTR = 76.16/- 
This PTR is included of GST. Now calculate PTR without GST by implementing similar formula. Replace margin with GST in formula. 
PTR (W/O GST) = 76.16*100/ (100+12) = 76.16/1.12= 68/- 

Price to Stockist:

For calculating price to stockist, pts calculation formula will be PTR*100/ (100+ Stockist Margin) 
PTS = 76.16*100/ (100+10) = 76.16/1.1 
PTS = 69.24/- 
This PTS is included of GST. Now calculate PTS without GST by implementing similar formula. 
PTS (W/O GST) = 69.24*100/ (100+12) = 69.24/1.12 = 61.82/- 

In similar way, you can calculate CnF price and other prices like super stockist, sub stockist, wholesale, distributor etc. 

PTS PTR Calculator in excel

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