Figure 10.6: Mapping Channel Pricing and Pocket Price
INPUT (Yellow Cells)
- No Negative Numbers
| CHANNEL | RETAIL | AMAZON | DIRECT | TOTAL |
| Channel Sales Mix | 100.0% | |||
| Consumer Price | $100 | $100 | $100 | $100 |
| Channel Discount | 50% | 40% | 0% | 41.0% |
| Wholesale Price | $50.00 | $70.00 | $100.00 | $59.00 |
| Product Cost | $20.00 | $20.00 | $20.00 | $20.00 |
| Gross Margin | $30.00 | $50.00 | $80.00 | $59.00 |
| Percent Gross Margin | 60.0% | 71.4% | 80.0% | 66.1% |
| Transaction Costs | ||||
| Shipping | $3.80 | |||
| Percent Returns | 3.40% | |||
| Returns Cost ($25) | $0.50 | $1.25 | $2.50 | $0.85 |
| Cash Discount (2%) | 1.40% | |||
| Cash Discount ($) | $1.00 | $0.00 | $0.00 | $0.70 |
| Delivered Cost | $4.50 | $2.25 | $17.50 | $5.35 |
| Contribution Margin | $25.50 | $47.75 | $62.50 | $33.65 |
| Percent Margin | 51.0% | 68.2% | 62.5% | 57.0% |
Instructions: Change the data in any yellow input cells to explore how contribution margin and percent margin change
by channel and total performance across these three marketing channels.