The trade profit margin is in the trade the difference between net sale price and cost price (goods employment). It represents the payment for the achievement furnished by the trade. In the commercial calculation the trade profit margin consists from the action costs and of the profit. It knows as absolute amount (absolute span, Betragsspanne) as well as relative Prozentzahl (relative span, per cent breakdown) and here as an impact span (on the cost price) or anticipated payment span (of the selling price) to be indicated.

Example:

 A dealer calculates for example on the purchase price (net) of 50,00 EUR 100% impact. This corresponds to a selling price of net 100.00 EUR (gross 116.00 EUR). The anticipated payment breakdown however amounts to 50% (50% of 100 = 50). 

Span in % = (1 - \ frac {EKnetto*1.16} {VKbrutto}) * 100

(1,16 - Factor for VAT rate in Dt., with food and books etc. is to be considered a calculation factor from 1,07 to!)

To consider is further a calculatory profit, consisting of

   * the calculatory entrepreneur wages (for the work input of the capital owner), * the calculatory interest (for the capital necessary for operation), * the calculatory venture premium (for the riskier plant of the assigned capital in the enterprise instead of than bank deposit) 

In such a way determined trade profit margin is only one minimum size for the selling price calculation. If a higher trade profit margin on the market can be realized, will done this, cannot it be realized, must savings with the action costs be realized or reductions at the profit be accepted.

Thus e.g. a lowering of the personnel expenditure leads not to an improvement of the trade profit margin, but only to an improvement of the share in the profits in the trade profit margin.

See also

• Selling price
• Margin
• Commercial calculation

Articles in category "Trade profit margin"

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