6/4/2016

(1)HowisthereturnoninvestmentcalculatedforFMCGdistributor?Quora

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SimpleCalculation!!
HowdoesanFMCGdistributormodelworkinIndia?

AssumeFMCGcompanygivesmarginof10%asgrossmargin.Distributorhasonlyone
product.ApplicableonlyalltransactionshappensinDDandNEFTnocreditisinvolved.

Whatistheminimuminvestmenttobecomeadrug
distributor?

InvestmentStockinvestment+ClosingStock(lyingingodown)+stockintransist+
Claimsfromthecompany

Whatarethevariouswaysinwhichwecancalculate
theROIforyourdistributorinFMCG/FMCDsalesand
distributioncontext?

FixedExpensesRent+Wages+AuditorfeeEtc(RS10000)A
VariableExpensesdiesel+EB+VAT+miscellaneous(Rs15000)B

ConsumerProductsandServices:Whoarethe
largestfmcgwholesalers/distributorsinDubai?

SupposedistributordoesBusinessofRs4,00,000asturnover
10%marginComestoRs.40000
so40000expenses(25000)(A+B)=Rs15000isthenetprofit

HowdoIgetdistributorsforanewFMCGproduct?
OncemyFMCGproductisready,shouldmyfirst
stepbefindingdistributors/CnFagentsorstart
advertising,giventhatIamslightlyshortof...
HowdoIknowthedistributorMARGINEforFMCG
products?

IfDistributorhadtoinvestRs300000asainitialinvestment

Whatismyreturnoninvestment?

ROI===Netprofit/Totalinvestment===>15000/300000====>5%Permonth
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Whenyoucalculateforthewholeyear5%*12=60%ROIperyear

PredominantlyFMCGCompanieswouldideallygive36%40%asROIPeryear

WhereinifyouputthesameamountinBank.Theywouldgiveyou1.5%Permonthand18
%peryear.Returnoninvestmentinbankis18%
WrittenJul29,2015
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Whatalternativedistributionmechanisms(compared
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tothetraditionaldistributor>dealer>retailer
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Howshouldonefindandapproachadistributorfora
newFMCGproductfromasmallcompany?
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LastAskedMar15
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SanjayMishra,BeenaninvestorandadvisorinIndianmarketsince20yrs
2.1kViews

ROI=((GrossincomeExpenses)/netinvestment)*12
GrossIncome=marginoninvoice+support\incentiveearnedfromcompany.
Expenses=warehouserentals+manpowerdedicated+vehiclerunningcost+others
investment=(stocksfromcompany+creditinmarket+investmentinofficesassets+

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6/4/2016

(1)HowisthereturnoninvestmentcalculatedforFMCGdistributor?Quora

vehicledownpayment)cocredit.
MostofthecompaniesinIndiaforturnoverlessthan5crperannumofferaround24%
perannumreturn
WrittenAug2,2015
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VikasChandra,Student
1.6kViews

Anotherwaytolookatitis:
ROIforanSKU=(Throughput/TrulyVariablecost)*BufferStock
whereTroughput=SellingPriceTrulyVariablecost
WrittenSep3,2015
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