📘 Understanding PTR & PTS
- PTR (Price to Retailer): This is the price at which the company sells the product to the retailer after deducting the retailer’s profit margin from the MRP (adjusted for GST).
- PTS (Price to Stockist): This is the price at which the company sells the product to the stockist after deducting the stockist’s profit margin from the PTR.
📊 Calculation Formulas
PTR = (MRP × (100 - Retail Margin)) / (100 + GST)
PTS = PTR × (1 - Stockist Margin / 100)
Retail Margin (%) = ((MRP - PTR) / MRP) × 100
Stockist Margin (%) = ((PTR - PTS) / PTR) × 100
💡 Example
If MRP = ₹100, Retail Margin = 20%, Stockist Margin = 10%, GST = 12%:
- PTR = (100 × (100 - 20)) / (100 + 12) = ₹71.43
- PTS = 71.43 × (1 - 10/100) = ₹64.29