Query:
Response:
Please find here best possible calculation from our side. Hope it will be helpful for you. You can calculate these things from any Goods and Service Tax (GST) value. Just replace 5% GST from your product GST value. Gst is divided into four slabs i.e. 5, 12, 18, 28 %.
MRP: MRP means Maximum Retail Price. It is the price at which customer will purchase the goods. It is inclusive of all taxes (GST).
PTS: PTS means Price to Stockist. It is the price at which any company will give its goods to stockist or distributors. It may be inclusive of GST or not.
PTR: PTR means Price to Retailer. It is the price at which retailer will purchase goods from stockist or distributors. It may be inclusive of GST or not.
Maximum Retail Price(MRP):
Maximum Retail Price (MRP) is calculated by total cost(including all cost like)+ margin + marketing expenses + C&F margin/franchisee margin + Stockist Margin+ Retailer Margin+ GST etc. Total cost may include manufacturing cost, transportation, electricity, GST, salary, rent, office handling charges etc. In case of pharma franchise marketing, C&F and pcd/Franchisee may be same or different. Read in detail how to calculate maximum retail price formula
Click here to Download MRP (Maximum Retail Price) Calculator in Microsoft Excel Format
Below calculation is for example purpose only. Change value of yellow color portion as per your need. Change value and wait for seconds to get your mrp online. Remove what is not applicable.
Calculating PTS/PTR value exculded of GST (For Registered Person Under GSTIN):Suppose MRP(Maximum Retail Price) is 100/- per strip (inclusive of GST)
Retailer Margin: 20%
Stockist Margin: 10%
How to calculate Maximum Retail Price, price to retailer and price to stockist with any MRP?
Here MRP means for Maximum Retail Price.
PTR means for Price to Retailer.
PTS means for Price to stockist.
Following calculation is useful in pharma industry as well as other industries:
Calculate it from opposite side:
MRP is 100/-
GST is 5%
Now deduct government GST from MRP i.e. remaining price after GST is MRP*100/(100+percentage as mention) i.e. 100*100/105=95.24.
GST= 4.76 .
How to Calculate MRP, PTR and PTS
That is total GST that will go to Government's gst department. Minor difference of gst will occur when you will bill to stockist and stockist will bill to retailer. That can be ignored and put this gst as standard. Every party will pay only that gst and this gst will be paid finally by customer. All other will get their gst refund from party they will bill.
Read Related: What was Vat/Tin/Cst/Excise in India?
PTR (Price to Retailer): Now calculate price of retailer. Calculate it with similar formula as above Amount*100(100+margin of Retailer) i.e. 95.24*100/(100+20)= 9524/120=79.36
Click Here to Download PTR/PTS/MRP calculator in Microsoft Excel Format
You can calculate any PTS/PTR online in below sheet. Just Change MRP Value and other values in Yellow color as per your need and wait for few seconds. You will get calculation online...
Price to retailer is calculated as per profit percentage you are going to give him i.e. generally nearly 20% or some time with scheme or may increase or decrease. Price to retailer will be approx. 79.36 plus 5% gst. As it should be nearly 83.32 to retailer. If retailer sell it to customer with MRP 100/- then he gets approx. 20% profit. In case if he will take 5% gst from customer, he has to bill this product at 95.24/- plus 5% gst. GST will be compensated and Difference between 95.24-79.36= 15.88/-. Then profit of retailer is 15.88*100/79.36=20.01%. You can further less or up profit of retail by increasing or decreasing it's selling rate or percentage of margin.
PTS(Price to Stockist):
Response:
Please find here best possible calculation from our side. Hope it will be helpful for you. You can calculate these things from any Goods and Service Tax (GST) value. Just replace 5% GST from your product GST value. Gst is divided into four slabs i.e. 5, 12, 18, 28 %.
MRP: MRP means Maximum Retail Price. It is the price at which customer will purchase the goods. It is inclusive of all taxes (GST).
PTS: PTS means Price to Stockist. It is the price at which any company will give its goods to stockist or distributors. It may be inclusive of GST or not.
PTR: PTR means Price to Retailer. It is the price at which retailer will purchase goods from stockist or distributors. It may be inclusive of GST or not.
Maximum Retail Price(MRP):
Maximum Retail Price (MRP) is calculated by total cost(including all cost like)+ margin + marketing expenses + C&F margin/franchisee margin + Stockist Margin+ Retailer Margin+ GST etc. Total cost may include manufacturing cost, transportation, electricity, GST, salary, rent, office handling charges etc. In case of pharma franchise marketing, C&F and pcd/Franchisee may be same or different. Read in detail how to calculate maximum retail price formula
Click here to Download MRP (Maximum Retail Price) Calculator in Microsoft Excel Format
Below calculation is for example purpose only. Change value of yellow color portion as per your need. Change value and wait for seconds to get your mrp online. Remove what is not applicable.
Calculating PTS/PTR value exculded of GST (For Registered Person Under GSTIN):Suppose MRP(Maximum Retail Price) is 100/- per strip (inclusive of GST)
Retailer Margin: 20%
Stockist Margin: 10%
How to calculate Maximum Retail Price, price to retailer and price to stockist with any MRP?
Here MRP means for Maximum Retail Price.
PTR means for Price to Retailer.
PTS means for Price to stockist.
Following calculation is useful in pharma industry as well as other industries:
Calculate it from opposite side:
MRP is 100/-
GST is 5%
Now deduct government GST from MRP i.e. remaining price after GST is MRP*100/(100+percentage as mention) i.e. 100*100/105=95.24.
GST= 4.76 .
How to Calculate MRP, PTR and PTS
That is total GST that will go to Government's gst department. Minor difference of gst will occur when you will bill to stockist and stockist will bill to retailer. That can be ignored and put this gst as standard. Every party will pay only that gst and this gst will be paid finally by customer. All other will get their gst refund from party they will bill.
Read Related: What was Vat/Tin/Cst/Excise in India?
PTR (Price to Retailer): Now calculate price of retailer. Calculate it with similar formula as above Amount*100(100+margin of Retailer) i.e. 95.24*100/(100+20)= 9524/120=79.36
Click Here to Download PTR/PTS/MRP calculator in Microsoft Excel Format
You can calculate any PTS/PTR online in below sheet. Just Change MRP Value and other values in Yellow color as per your need and wait for few seconds. You will get calculation online...
Price to retailer is calculated as per profit percentage you are going to give him i.e. generally nearly 20% or some time with scheme or may increase or decrease. Price to retailer will be approx. 79.36 plus 5% gst. As it should be nearly 83.32 to retailer. If retailer sell it to customer with MRP 100/- then he gets approx. 20% profit. In case if he will take 5% gst from customer, he has to bill this product at 95.24/- plus 5% gst. GST will be compensated and Difference between 95.24-79.36= 15.88/-. Then profit of retailer is 15.88*100/79.36=20.01%. You can further less or up profit of retail by increasing or decreasing it's selling rate or percentage of margin.
Now calculate price to stockist: Formula is Amount*100(100+margin of Stockist) i.e. 79.36*100/(100+10)= 7936/110=72.15/-
Price to stockist is calculated as per given profit percentage i.e. 10% in most of cases. May be high or low depend upon company or product, you are working. Price to stockist should be get product at 72.15/- plus 5% GST. It will be nearly 75.76/- to stockist. Gst will be compensated with gst of retailer. Hence, 79.36-72.15=7.21/-. Here profit of stockist is 7.21*100/72.15=9.99% i.e. nearly equal to 10%.
Price to stockist is calculated as per given profit percentage i.e. 10% in most of cases. May be high or low depend upon company or product, you are working. Price to stockist should be get product at 72.15/- plus 5% GST. It will be nearly 75.76/- to stockist. Gst will be compensated with gst of retailer. Hence, 79.36-72.15=7.21/-. Here profit of stockist is 7.21*100/72.15=9.99% i.e. nearly equal to 10%.
Now you can calculate PTR or PTS at any MRP by this formula. Same you can apply to your c&f prices and net rates....
Calculating PTS/PTR value inclusive of GST (For Unregistered Person Under GSTIN):Unregistered persons can bill to retailer as per calculation mentioned above. But they can't mention or collect GST from retailer. They can issue invoice to retailer inclusive of GST without mentioning GST rate. For example MRP is 100/-
Retail Margin is 20%. GST is 5%. They can't collect GST directly by mentioning GST in Invoice. They can invoice at PTR inclusive of GST. They can bill to retailer by calculating PTR(inclusive of GST) as follow:
PTR: MRP/(100+retail margin) x 100
= 100/120 x 100= 10000/120= 83.33/-
In This rate Retailer price 79.36/- plus 5% GST will be included. An unregistered person is not authorized to collect the tax, so they can't add GST column in their invoice and have to bill inclusive of GST.
Like wise PTS will be calculated.
PTS: PTR/(100+Stockist margin) x100 = 83.33/110 x 100 = 8333/110 = 75.76/-
In This rate Stockist price 72.15/- plus 5% GST will be included. An unregistered person is not authorized to collect the tax, so they can't add GST column in their invoice and have to bill inclusive of GST.
More Examples at Request by our Reader:
Query: How can calculate MRP AND PTR AND PTS kindly explain. Urgently message for one example
Calculating PTS/PTR value inclusive of GST (For Unregistered Person Under GSTIN):Unregistered persons can bill to retailer as per calculation mentioned above. But they can't mention or collect GST from retailer. They can issue invoice to retailer inclusive of GST without mentioning GST rate. For example MRP is 100/-
Retail Margin is 20%. GST is 5%. They can't collect GST directly by mentioning GST in Invoice. They can invoice at PTR inclusive of GST. They can bill to retailer by calculating PTR(inclusive of GST) as follow:
PTR: MRP/(100+retail margin) x 100
= 100/120 x 100= 10000/120= 83.33/-
In This rate Retailer price 79.36/- plus 5% GST will be included. An unregistered person is not authorized to collect the tax, so they can't add GST column in their invoice and have to bill inclusive of GST.
Like wise PTS will be calculated.
PTS: PTR/(100+Stockist margin) x100 = 83.33/110 x 100 = 8333/110 = 75.76/-
In This rate Stockist price 72.15/- plus 5% GST will be included. An unregistered person is not authorized to collect the tax, so they can't add GST column in their invoice and have to bill inclusive of GST.
More Examples at Request by our Reader:
Query: How can calculate MRP AND PTR AND PTS kindly explain. Urgently message for one example
Response:If mrp is 95 Deduct 5% gst first Then calculate ptr and pts by following formula Amount*100/(100+percentage). Here you can place MRP, PTR PTS in place of amount to calculate particular price.
95*100/105= 90.47%
Remaining then deduct 20 percentage of retailer margin
90.47x100/120=75.39
This is PTR (Price to Retailer)
Now 75.90x100/110 = 68.53
This is PTS(Price to Stockist)
One more example if mrp 57 then what will be ptr and pts
Deduct gst as applicable. We are considering 5% Then actual mrp will be after excluding of gst is 57x100/105= 54.28
Calculate PTR by formula is 54.28x100/120=45.23
Pts is 45.23x100/110= 41.11
We can calculate ptr and pts with including of gst or excluding of gst. Both above example is excluding of gst what we had deducted in starting At every stage gst is added with invoice. But actual gst is paid by consumer. All middle men don't pay gst from their pocket. They get it from next one in supply chain. There will be minor increase in gst during supply from company to c&f, c&f to distributor or distributor to retailer but this amount could be neglected during calculation.
Query: 2How to derive the price list for if :
MRP is Rs.295/- including GST 5%
Stokiest Margin-6 %
Distributors margin 8%
Retailer Margin 15% on MRP
I will be thankful if you help me out.
Response:MRP is 295/- included Gst. Calculate it in reverse direction. it will be more easy.
Now calculate Price to retailer (Included Gst) First:
Formula is Rate/MRP *100/(100+margin)
295*100/(100+15)=295*100/115=256.52/-.i.e 257
Calculate Price to Distributor(Included Gst): 257*100/(100+8)=257*100/108= 237.96 i.e. 238
Price to Stockist (Included Gst) will be 238*100/(100+6)=238*100/106=224.53 i.e. 225/-
If want to calculate without Gst then deduct 5% gst from mrp first and then calculate all as shown in our article how to calculate mrp/ptr/pts
Query 3:I would like to know the formula of PTR or TRADE PRICE of pharmaceutical company . How to calculate trade price or ptr.
I am a distributor /wholesaler of pharma company.
These are the pharma company net rate and mrp
Rs. 11 net rate, 44.30 mrp
Rs.7.75 net rate, 16.50 mrp
Rs. 10 net rate, 32 mrp
Rs. 13 net rate, 42 mrp
Rs. 16.5 net rate, 65 mrp
Rs. 18 net rate, 80 mrp
Rs. 23 net rate, 80 mrp
Rs. 7 net rate, 35 mrp
Rs. 9 net rate, 44 mrp
Rs. 32 net rate, 150 mrp
Response:Read in detail at How to calculate trade price or Ptr?
Formula is MRP(Rate)*100 divided by (100+Percent of margin)
PTR or Trade rate is calculate by above formula: (Supposing retailer margin is 20%)
44.30*100/(100+20)= 4430/120 = 36.92/-
16.50*100/(100+20)= 1650/120 = 13.75/-
32*100/(100+20)=3200/120=26.67/-
42*100/(100+20)=4200/120=35/-
65*100(100+20)=6500/120=54.17/- same continue as
8000/120=66.67/-
8000/120=66.67/-
3500/120=29.17/-
4400/120=36.67/-
15000/120=125/-
Hope you have found this article helpful. If you have any another method for calculating ptr and pts, you can share with our readers through comment or mail. We will update our article with better way of calculating. Please revert with your suggestions and queries at [email protected]
Read Here: How to calculate profit margin, net rates, trade rates in Pharma franchise/pcd Marketing?
Read Related:
95*100/105= 90.47%
Remaining then deduct 20 percentage of retailer margin
90.47x100/120=75.39
This is PTR (Price to Retailer)
Now 75.90x100/110 = 68.53
This is PTS(Price to Stockist)
One more example if mrp 57 then what will be ptr and pts
Deduct gst as applicable. We are considering 5% Then actual mrp will be after excluding of gst is 57x100/105= 54.28
Calculate PTR by formula is 54.28x100/120=45.23
Pts is 45.23x100/110= 41.11
We can calculate ptr and pts with including of gst or excluding of gst. Both above example is excluding of gst what we had deducted in starting At every stage gst is added with invoice. But actual gst is paid by consumer. All middle men don't pay gst from their pocket. They get it from next one in supply chain. There will be minor increase in gst during supply from company to c&f, c&f to distributor or distributor to retailer but this amount could be neglected during calculation.
Query: 2How to derive the price list for if :
MRP is Rs.295/- including GST 5%
Stokiest Margin-6 %
Distributors margin 8%
Retailer Margin 15% on MRP
I will be thankful if you help me out.
Response:MRP is 295/- included Gst. Calculate it in reverse direction. it will be more easy.
Now calculate Price to retailer (Included Gst) First:
Formula is Rate/MRP *100/(100+margin)
295*100/(100+15)=295*100/115=256.52/-.i.e 257
Calculate Price to Distributor(Included Gst): 257*100/(100+8)=257*100/108= 237.96 i.e. 238
Price to Stockist (Included Gst) will be 238*100/(100+6)=238*100/106=224.53 i.e. 225/-
If want to calculate without Gst then deduct 5% gst from mrp first and then calculate all as shown in our article how to calculate mrp/ptr/pts
Query 3:I would like to know the formula of PTR or TRADE PRICE of pharmaceutical company . How to calculate trade price or ptr.
I am a distributor /wholesaler of pharma company.
These are the pharma company net rate and mrp
Rs. 11 net rate, 44.30 mrp
Rs.7.75 net rate, 16.50 mrp
Rs. 10 net rate, 32 mrp
Rs. 13 net rate, 42 mrp
Rs. 16.5 net rate, 65 mrp
Rs. 18 net rate, 80 mrp
Rs. 23 net rate, 80 mrp
Rs. 7 net rate, 35 mrp
Rs. 9 net rate, 44 mrp
Rs. 32 net rate, 150 mrp
Response:Read in detail at How to calculate trade price or Ptr?
Formula is MRP(Rate)*100 divided by (100+Percent of margin)
PTR or Trade rate is calculate by above formula: (Supposing retailer margin is 20%)
44.30*100/(100+20)= 4430/120 = 36.92/-
16.50*100/(100+20)= 1650/120 = 13.75/-
32*100/(100+20)=3200/120=26.67/-
42*100/(100+20)=4200/120=35/-
65*100(100+20)=6500/120=54.17/- same continue as
8000/120=66.67/-
8000/120=66.67/-
3500/120=29.17/-
4400/120=36.67/-
15000/120=125/-
Hope you have found this article helpful. If you have any another method for calculating ptr and pts, you can share with our readers through comment or mail. We will update our article with better way of calculating. Please revert with your suggestions and queries at [email protected]
Read Here: How to calculate profit margin, net rates, trade rates in Pharma franchise/pcd Marketing?
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- How to apply for Trade Mark registration?
- How to apply for Goods and Service Tax Number?
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- How to Build Strong Distribution Channel?
- Top most business opportunities available in Pharmaceutical sector read here
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This post first appeared on Pcd Pharma Franchise Help (Pharma, Healthcare, He, please read the originial post: here
