Free Tool · Go-to-Market & Distribution

Distributor ROI & Working Capital Simulator

See your brand through your distributor's P&L — margins, credit and cash.

Your distributor is running a business, not a favour. Enter their purchase volume, margin, expenses, capital and cash cycle — and see whether partnering with you beats their cost of capital.

For: Sales / Channel Head·Free — no sign-up for results·Related service: Channel & Route-to-Market
Gross margin earned8%
Trade margin + schemes, before their costs.
Gross margin / month₹80,000
Net earnings / month₹38,000
Cash cycle47 days
Stock rotations / month0.64
Return on capital (annualised)26%
Healthy partner economics. Protect them: late claims and forced loading erode this fast.

Levers, ranked by partner impact

  • Cut market credit days — the cheapest ROI lever you control jointly.
  • Raise rotation (smaller, frequent orders) before raising margin.
  • Pay claims in 30 days — unpaid claims are a hidden margin cut.
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How it works

Net earnings = gross margin on purchases − their monthly expenses (godown, staff, van, fuel).

Cash cycle = stock days + market credit days − credit you give them. Capital locked ≈ daily purchase value × cycle days.

Return on capital is annualised. Below ~24%, partners under-invest in your brand or quietly leave; above it, protect the economics that keep them.

Worked example

A distributor buys ₹10 L/month at 8% margin, spends ₹42,000, with a 47-day cash cycle locking ₹15.7 L. Net ₹38,000/month on ₹15.7 L is 29% annualised — healthy. Cut market credit by 10 days and ROI jumps past 40%: cheaper than any scheme.

Illustrative figures, not a client outcome.

Questions, answered

Why should I care about my distributor's ROI?

Because their ROI decides their behaviour. A partner earning 15% on capital rations your credit, skips beats and prioritises whoever pays better — your coverage dies quietly.

What's the cheapest way to raise partner ROI?

Cut the cash cycle — faster claims settlement, smaller frequent orders, disciplined market credit — before touching margin points.

Version 1.0 · Reviewed 2026-10 · Methodology is fixed and version-controlled; results depend on your inputs.

Losing distributors and not sure why? The answer is in their P&L.

BLEZZINGS runs this analysis inside a focused engagement — with your data, your market and a plan to act on it.