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Channel Margin Formula

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The Channel Margin is a pretty easy to understand metric – basically, it’s the difference between the price a manufacturer has on its product and the price a consumer is paying for that product. Check FAQs

CM = (\frac{SP - CP}{SP}) \cdot 100

CM - Channel margin?SP - Selling Price?CP - Cost Price?

Channel Margin Example

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Here is how the Channel Margin equation looks like with Values.

Here is how the Channel Margin equation looks like with Units.

Here is how the Channel Margin equation looks like.

33.3333 = (\frac{150 - 100}{150}) \cdot 100

33.3333 = (\frac{150 - 100}{150}) \cdot 100

33.3333 = (\frac{150 - 100}{150}) \cdot 100

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Channel Margin Solution

Follow our step by step solution on how to calculate Channel Margin?

FIRST Step Consider the formula

CM = (\frac{SP - CP}{SP}) \cdot 100

Next Step Substitute values of Variables

∴

CM = (\frac{150 - 100}{150}) \cdot 100

Next Step Prepare to Evaluate

∴

CM = (\frac{150 - 100}{150}) \cdot 100

Next Step Evaluate

∴

CM = 33.3333333333333

LAST Step Rounding Answer

∴

CM = 33.3333

Channel Margin Formula Elements

Variables

Channel margin

The Channel Margin is a pretty easy to understand metric – basically, it’s the difference between the price a manufacturer has on its product and the price a consumer is paying for that product.

Symbol: CM

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Channel margin

Selling Price

The Selling Price indicates the price associated with the selling products.

Symbol: SP

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Selling Price

Cost Price

Cost Price refers to the cost of producing something or the price at which it is sold without making any money.

Symbol: CP

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Cost Price

Other formulas in Marketing Metrics category

Go Market Penetration

MP = (\frac{n}{TP}) \cdot 100

Go Revenue Market Share

RMS = (\frac{SR}{TMR}) \cdot 100

Go Brand Penetration

B P = (\frac{n}{TP}) \cdot 100

Go Revenue Share of Requirements

RS req = \frac{B purchases}{C purchased}

How to Evaluate Channel Margin?

Channel Margin evaluator uses Channel margin = ((Selling Price-Cost Price)/Selling Price)*100 to evaluate the Channel margin, Channel Margin is defined as the difference between the price a manufacturer has on its product and the price a consumer is paying for that product. Channel margin is denoted by CM symbol.

How to evaluate Channel Margin using this online evaluator? To use this online evaluator for Channel Margin, enter Selling Price (SP) & Cost Price (CP) and hit the calculate button.

FAQs on Channel Margin

What is the formula to find Channel Margin?

The formula of Channel Margin is expressed as Channel margin = ((Selling Price-Cost Price)/Selling Price)*100. Here is an example- 33.33333 = ((150-100)/150)*100.

How to calculate Channel Margin?

With Selling Price (SP) & Cost Price (CP) we can find Channel Margin using the formula - Channel margin = ((Selling Price-Cost Price)/Selling Price)*100.

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Channel Margin Formula

Channel Margin Example

Channel Margin Solution

Channel Margin Formula Elements

Other formulas in Marketing Metrics category

How to Evaluate Channel Margin?

FAQs on Channel Margin

Variable Name