PTR (Price to Retailer) and PTS (Price to Stockist) are important pricing terms in the pharma industry. PTR is the rate at which the company gives the product to the retailer, while PTS is the rate at which the product is received by the stockist. Using these calculators, these rates are easily calculated on the basis of MRP, margin and tax. This brings clarity in profit planning, billing and supply chain management and maintains price transparency.
The Role of PTR & PTS in Pharma Pricing
Here’s a simple breakdown of PTR and PTS for better clarity:
What is PTR?
PTR (Price to Retailer) is the price at which the distributor or stockist sells the product to the retailer. This rate includes the stockist’s margin, but not the retailer’s. On the basis of PTR, the retailer decides the MRP by adding his margin. This is an important point for pricing transparency and profit calculation in the pharma business.
What is PTS?
PTS (Price to Stockist) is the rate at which the PCD pharmaceutical company supplies its product to the stockist. This is the most basic level price, in which the company keeps its margin. Above PTS, the stockist adds his margin, which forms PTR. This rate is the first step in the pharma supply chain and is very important for profit calculation.
How to Easily Calculate PTR and PTS in Pharma?
Essential Data Needed for PTR & PTS Calculation:
. MRP of the product per strip
. GST percentage
. Retailer Margin Percentage
. Stockist Margin Percentage
Formula to Calculate PTR (Price to Retailer):
PTR = MRP × (100 – Retailer Margin) ÷ 100
PTR is the rate which the stockist gives to the retailer – the retailer gets this only after
subtracting the margin.
Example:
MRP = ₹100, Retailer Margin = 20%
PTR = ₹100 × (100 – 20) ÷ 100 = ₹80
Formula to Calculate PTS (Price to Stockist):
PTS = MRP × (100 – (Retailer Margin + Stockist Margin)) ÷ 100
This formula is calculated on the basis of MRP. In this both the margins are deducted, which gives the basic stockist price.
Example:
MRP = ₹100, Retailer Margin = 20%, Stockist Margin = 10%
PTS = ₹100 × (100 – 30) ÷ 100 = ₹70
Using PCD Tools for Accurate PTR & PTS Calculation
With PCD tools you can easily calculate PTR and PTS by entering MRP and margins, without
making any mistake.
