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Can your channel price support every layer?
Work backward from retail price through retailer and distributor margins to manufacturer contribution.
Example scenario
Editable demonstration inputs, not verified industry benchmarks. Enable JavaScript to calculate your own scenario.
- End-customer price
- $200
- Retailer margin on sales
- 35 %
- Distributor margin on sales
- 20 %
- Manufacturer variable cost
- $65
- Channel support / unit
- $8
- Annual units
- 10,000
Annual manufacturer contribution
Example result only, not a forecast or promise.
- Manufacturer net revenue / unit
- $104
- Contribution / unit
- $31
- Manufacturer contribution margin
- 29.8%
What to do with this result
Use margin-on-sales consistently, not markup-on-cost; confirm returns, freight and promotional obligations in the channel agreement.
Know what is inside the model.
Planning model, not personalized financial advice. Your inputs remain in your browser.
Calculation method
Manufacturer revenue / unit = retail price × (1 − retailer margin) × (1 − distributor margin).
Assumptions and limitations
- Example inputs are editable scenarios, not Aryo results or independently verified industry benchmarks.
- Contribution excludes fixed overhead, tax and financing; validate demand response before changing prices.