Pricing---Margin

Indep Drug

Chain Dru

g

Groce

ry

Convenience

Mass

Merch

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

Allround’s Average Retail Price by Channel

Retail Price

Competitive price at

Grocery store

Allround ‘s the most important channel:

Grocery’s sales increase

significantly

Pricing

We make an assumption that Grocery store ‘s sales volume contribute to ?(here need to make an assumption but I am not sure about that)

The Role of MSRP

Our retail price will be positioned at the middle level according to MSRP

Manufacturer's Suggested Retail Price

Retail price

MSRP-MSRP*15%~40%(volume discount)

Impact on Distributor• Based on your current pricing policies, what’s the impact on

your distribution of a $1 increase in MSRP? A $1 decrease?

• High MSRP

MSRP

Volume Discount • High Retail

Price

Retail Price

• Low units of volume

Units of Volume • <250 or

<2500+

Distribution channel

Margin Structure

Gross Margin

Promotional Allowance

Manufacture Sales

Costs of Goods Sold

Allstar B&B Curall Ethik0

50

100

150

200

250

300

350

400

450

500

Manufacture SalesCosts of Goods SoldPromotional Allowance

Gross Margin:

190.8 Gross Margin:

225.3

Gross Margin:

204.1

Gross Margin:

271.8

Although 18% (or $74.9M)’s promotional allowance contribute to the sales, the comparably high Cost of Goods lead to unsatisfactory gross margin.