Financial Calculators To Measure Partner Profitability
We know that partners’ loyalty to a vendor is largely driven by profitability, but have you ever stopped to think about how profitable your program is. The following calculators have been made available to help you assess the impact of your channel program initiatives on partner profitability.
Price Discounts
Unlike vendors (who are driven by revenue), partners are driven by Gross Profit. This calculator determines the impact of discounting on partner profitability. Enter the current margin, and the new margin (after the discount) and you can see the impact on your partner’s profit.
Giveaways
Most vendors run some sort of “Buy x, get y Free” promotion to move a lot of stock quickly. In most cases, programs like this can make a big difference to a partner’s bottom line. This calculator determines the impact of such giveaways on partner profitability. Enter the typical reseller margin and the program details, and you can see the impact on your partner’s profit.
Rebates
Vendors often give rebates to partners for achieving certain sales targets. This calculator determines the impact of rebates on partner profitability. Enter the reseller discount, their typical margin, the rebate amount and method of calculating the rebate, and you can see the impact s on your partner’s profit.
Solutions Sales
As a vendor, your revenue comes from your product sales. But for partners, their profit is a combination of the blended margin they make on three elements – your product, related 3rd party products, and related services. This calculator helps you understand how much of an impact your product has on partner profitability in the overall sale.
