Same product, four channels, four different P&Ls. Compare them properly.
Same product, four channels, four different P&Ls. Enter realisation, channel costs, logistics, credit days and service cost per channel, and compare contribution per unit — the only honest basis for channel mix decisions.
| Channel | Realisation % | COGS % | Channel cost % | Logistics % | Credit days | Service % | Units /mo | Contribution / unit |
|---|---|---|---|---|---|---|---|---|
| -₹2 (-2.98%) | ||||||||
| -₹3 (-4.15%) | ||||||||
| ₹0 (0.15%) | ||||||||
| ₹29 (28.93%) |
Per channel: contribution = realisation − COGS − channel margin/fees − logistics − credit cost (at 12% p.a. on days outstanding) − service cost.
Realisation % captures your net price into that channel; channel cost % captures margins, commissions and schemes combined.
Rank by contribution %, then check monthly contribution — a high-margin channel that can't carry volume doesn't fund the business.
Illustrative figures, not a client outcome.
Merchandising, demos, claims, returns handling, content — the recurring cost of keeping the channel selling, expressed as % of realisation.
45-day terms at 12% p.a. cost ~1.5% of realisation — invisible in most channel comparisons and decisive in close calls.
Version 1.0 · Reviewed 2026-10 · Methodology is fixed and version-controlled; results depend on your inputs.
Channel mix decided by habit? Rebuild it on contribution.
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