Marketing people: "gross margin" Mistakes and conversion trick
Concept of "margin" concept, from a financial perspective, generally refers to gross profit divided by turnover (or sales, gross margin, when enterprises are involved in general,
most of them refer to this algorithm. However, many sales people, referring to Mao When interest rates are often refers to the gross profit divided by cost. in the sales area, the habit of saying that the former is called "upside down profit", which is called "cis-plus." as follows: X (purchase price + Y (gross = Z (turnover Flip margin = Y (gross profit ? Z (turnover
Shunga margin = Y (gross profit ? X (purchase price
Because the sales staff and financial or dealer (especially
some stores, supermarkets, when talking about operating profit, each on the "margin" concept is often not unified, not the same thing actually refer to each other, can not avoid the controversial nature. ( From a financial point of view, the general non-smooth plus the algorithm.
The author has been engaged in marketing, because not much financial knowledge at the beginning, the concept of gross margin range on a number of errors. Mainly because it is the actual work product and distributor of operating profits, they
often speak the same language, although all use the "gross margin" is, but the actual formula used is often not consistent.
However, after pondering, I concluded a rapid conversion "shunga gross margin" and "gross margin upside down" formula.
See the following formula:
1. Shunga Flip gross margin = gross profit ? (1 + shunga
2. Shunga gross profit margin = gross margin upside down ?
(1 - gross margin upside down
Based on the above formula, can quickly achieve gross margin between the two different conversion. In connection with distributors (such as supermarkets to communicate, flew at a glance. For example, the supermarket asking for 40% retail profit upside down, you immediately know, shunga margin is 40% ? (1-40% = 66.7%, such as cis-plus you say 40%, then buckle
down profit is 40% ? (1 +40% = 28.6%