How do I calculate true profit per retailer?
Revenue by Retailer − All Deduction Costs = True Profit
The deduction costs include:
- Trade spend (billbacks, scanbacks)
- Shortages and damages
- Slotting and new item activation
- Compliance charges
- Early payment discounts
- Freight
A retailer that contributes $2 million in revenue but takes $700,000 in total deductions is a very different proposition than the revenue number suggests.
Why does a flat deduction budget not work?
Deductions run 25-35% of gross revenue on average. But one retailer might run at 18% while another runs at 42%. A flat budget hides the retailer that is destroying your margin.
How do I compare planned versus actual deduction spend?
Your promotion calendar is the source of truth. Compare it against actual deductions by retailer. If you planned $40,000 in trade spend with a retailer and actual deductions hit $65,000, that $25,000 variance is margin you did not account for.
What decisions does this data unlock?
- Which retailer relationships to grow
- Which to renegotiate terms on
- Which to walk away from
- Which promotions actually made money after deductions
How Revya handles per-retailer profitability
Revya categorizes every deduction by retailer, type, and product automatically. The system compares actual deductions against your promotion calendar, flags variances, and shows you true profit per retailer. See how Revya gives you per-retailer visibility
Frequently Asked Questions
How do I calculate true profit per retailer?
Revenue by retailer minus all deduction costs — trade spend, shortages, compliance, slotting, early payment discounts, freight.
Why does a flat deduction budget not work?
One retailer might run at 18% deductions while another runs at 42%. A flat budget hides that difference.
How do I compare planned versus actual deduction spend?
Compare your promotion calendar against actual deductions by retailer. The variance is unplanned margin loss.
What does planned versus actual deduction spend tell me?
It shows where deductions exceed what you agreed to in your promotion calendar, revealing both recoverable errors and unplanned costs that need renegotiation.