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1. Trade Promotion ROI Calculator
Assumptions
Product Retail Price $12.99
Cost of Goods Sold $4.70
Historical Sales Volume (Units) 5000
Sales During Promotion (Units) 7000
Retailer Costs1 $10,000.00
Supply Chain Costs2 $500.00
Marketing Costs3 $1,000.00
Distribution Costs4 $0.00
Results - Prior to Trade Promotion Campaign
Profit/Sale Profit/Month Profit/Year
$8.29 $41,450.00 $497,400.00
Results - 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. 1 Retailer costs include trade spend: Temporary Price Reduction costs, Settlement, Floor Display or Point-of-Purchase costs
2 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