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?


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.

Now 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.

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

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, 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, 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. 

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Keywords: pts and ptr full form, how to calculate net rate in medicine, how to calculate price to stockist of pharma, maximum retail price calculation excel, distributor margin formula, how to calculate pts, how to calculate mrp in gst



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