How to Calculate and Increase FMCG Distributor ROI For any Fast-Moving Consumer Goods (FMCG) company, the distributor network is the lifeblood of its business. A distributor's profitability, measured by their Return on Investment (ROI), is a crucial indicator of the health and sustainability of this relationship. A healthy ROI keeps distributors motivated, loyal, and invested in growing your brand. But how exactly do you calculate it, and more importantly, how can you help them increase it? ๐ค Calculating the FMCG Distributor's ROI: A Step-by-Step Guide The basic formula for calculating ROI is simple: Returns divided by Investment. However, in the context of an FMCG distributor, breaking down each component is essential for an accurate calculation. The goal is to determine the ROI for your company's business alone, not the distributor's entire operation. 1. Calculate Returns (Net Profit) Returns represent the net profit the distributor makes from your product...
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