Trade Promotion ROI Calculator

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Trade Promotion ROI Calculator

  1. 1. Trade Promotion ROI CalculatorAssumptionsProduct Retail Price $12.99Cost of Goods Sold $4.70Historical Sales Volume (Units) 5000Sales During Promotion (Units) 7000Retailer Costs1 $10,000.00Supply Chain Costs2 $500.00Marketing Costs3 $1,000.00Distribution Costs4 $0.00Results - Prior to Trade Promotion Campaign Profit/Sale Profit/Month Profit/Year $8.29 $41,450.00 $497,400.00Results - Following Trade Promotion Campaign Profit/Sale Profit/Month Profit/Year Promo Cost ROI $6.65 $46,530.00 $558,360.00 $11,500.00 44%
  2. 2. 1 Retailer costs include trade spend: Temporary Price Reduction costs, Settlement, Floor Display or Point-of-Purchase costs2 Supply chain costs include: Increased Inventory, Lost Production Time, Expediting costs, additional Overtime costs, etc.3 Marketing costs include: Campaign Design, Packaging, Development, Advertisements, Promotion, etc.4 Distribution costs includes extra Inventory/Storage required and incremental increased costs of Transportation for this promo

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