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What is distribution margin?
The distribution margin is an accountancy term that describes the degree of profit or loss with respect to a good that is bought wholesale. You will need the wholesale price of the good, as well as the average sales price for which you are selling the good on the market.
How many countries are there in Hindustan Unilever?
190 countries
HUL is a subsidiary of Unilever, one of the world’s leading suppliers of Food, Home Care, Personal Care and Refreshment products with sales in over 190 countries.
What is the profit margin for a distributor in Unilever?
The profit margin for a distributor in Unilever or any other fmcg companies range from 4 to 8\% The average margin is 5\% in most of the fmcg companies like p&g,Rb,etc. Most of the distributor operates in a thin margin only. Frank ly speaking,the ROI is not very impressive despite huge volume business,and the ROI will work out from 2.5 to 3 percent.
What is the average HUL distributor margin and gross return?
The average HUL distributor margin is 5\% Your Gross Return will be 65\% on your initial investment amount. From this you have to minus all your expenses relating to salaries, rentals, fuel, wear and tear etc. In an ideal scenario you will get a return of 30\% on your invested money at the end of an year (without including your salary).
Should I invest in HUL distributor?
If you are in a good area you will able to rotate your money 13 times in a year. The average HUL distributor margin is 5\% Your Gross Return will be 65\% on your initial investment amount. From this you have to minus all your expenses relating to salaries, rentals, fuel, wear and tear etc.
How can I become a distributor for a big company like Unilever?
If you wish to become a distributor for big companies like Unilever you need to have a robust infrastructure i.e. Gowdowns, office, vehicle’s & manpower to handle the business. You also need to have deep pockets for this kind of business.