PTR and PTS Calculator

What are PTR and PTS

“Retail margin” is the gross margin a retail company receives when selling goods. Retailer Margin is the distinction between retail price and price of goods sold. The Retailer margin (also known as the Wholesale Margin and Retailing Margin in the industry) distinguishes the manufacturer price of a generic pharmaceutical and its retail price. This is computed by dividing the Retail Price of the medication by the manufacturer’s wholesale price. 

What is GST?

Goods and Services Tax, also known as GST, is an indirect regressive tax employed in India to levy customs and Central Excise duties on imports and exports. It is a complete, single-stage, destination-based indirect tax: complete because it contains all the other indirect taxes, apart from some state taxes, like stamp duty, local value markup and property tax. It is developed to facilitate the flow of foreign trade by taxing consumption expenses at the start and shifting tax revenues to guarantee a level of internal market contest. The significant features of this tax include its simplicity, widespread application, comparability with other indirect taxes, stable tax ground and liberalization of tax rates. It aims to deliver a regressive source of income for the government and boost domestic production and employment. The major disadvantage of this tax system is its possible volatility.

What iS MRP?

MRP stands for Maximum Retail Price. It is the price at which a customer will be able to purchase medicine from a retail pharmacy at the time of purchase. There is GST included in the price.

What is Price to Stockist or PTS?

PTS refers to Price to Stockist. Pharma companies use this price to determine what they will charge stockists or distributors for their goods. GST is excluded from the price.

Sales of a product = PTS * Quantity of product sold from a stockist.

What is Price to Retailer or PTR?

PTR refers to Price to Retailer. This is the price at which the retail pharmacy will purchase any medicine from the pharma stockists so that they can sell it to the consumer. GST is not included in the price.

What is MRP in PCD Pharma?

MRP, Called Maximum retail price, is a manufacturer’s calculated price, the highest price that can be charged for a product traded in India or any other country. MRP is inclusive of all taxes, including GST. It must be stated that retailers cannot charge GST over and above the MRP. GST is already contained in the MRP printed on the development. What is Stock Margin in PCD Pharma? The Stock Margin is the % of sales that is left over after all costs, including taxes, reduction, interest, and all other essential expenses, have been subtracted. Typically, best stock dividends are included in this analysis, while ordinary stock dividends are not.

What is Retailer Margin in Pharma?

“Retail margin” is the gross margin a retail company receives when selling goods. Retailer Margin is the distinction between retail price and price of goods sold. The Retailer margin (also known as Wholesale Margin and Retailing Margin in the industry) distinguishes the manufacturer price of a generic pharmaceutical and its retail price. This is computed by dividing the Retail Price of the medication by the manufacturer’s wholesale price. 

PTR and PTS Calculator with GST for PCD Pharma Franchise in India

MRP
GST %
Retailer Margin %
PTR
Stockist Margin %
PTS
 

With the introduction of GST, Pharma Retailers and Pharma Stockists have changed their rate calculations. The following formula will give you a general idea of how to calculate retailer and stockist margins. Here PTR means Price to Retailer and PTS means Price to the stockist. Also, you can calculate the net scheme. 

How to calculate PTR?

Formula to Find PTR- To calculate the PTR first we have to calculate Net Margin and GST Factor.

Net Margin (It is Inclusive of GST)– To calculate the Net margin directly minus the Retail % from MRP

Net Margin = MRP – Retail %

GST factor (Which is useful to minus GST amount from net margin)-

GST Factor = 100 + GST% / 100
PTR = Net margin / GST Factor

How to calculate PTS? Formula to Find PTS

PTS = PTR – Stockist %

Calculate PTR and PTS at Modron Healthcare

If you still do not understand how to calculate PTR and PTS, you can reach out to us through Modron Healthcare website and calculate PTR and PTS through our unique PTS-PTR calculator on the Modron Healthcare Website. If you wish to start as a Pharma Franchise under us, you can reach out to us through email or calling directly on our helpline numbers and be a Pharma Franchise of Modron Healthcare. Modron Healthcare is the best PCD Pharma Franchise company in India with Experienced Staff and Best Quality Products which makes it easier for you to start your own business in India.