PTR & PTS Calculator

What is PTR (Price to Retailer)?

Price to Retailer (PTR) refers to the price at which the retailer purchases the product from the stockist or distributor. This price includes the stockist’s margin and forms the basis for determining the MRP (Maximum Retail Price). Retailers further add their margin before selling the product to end consumers.

Formula for PTR Calculation:

PTR = PTS + Stockist Margin

Where:

  • PTS (Price to Stockist) is the price at which the product is supplied to the stockist by the company.
  • Stockist Margin is the percentage markup added by the stockist before selling to retailers.

What is PTS (Price to Stockist)?

Price to Stockist (PTS) is the price at which pharmaceutical companies sell their products to stockists or distributors. This price includes the manufacturer’s cost, profit margin, and any applicable taxes.

Formula for PTS Calculation:

PTS = MRP / (1 + GST%) * (1 – Retailer Margin%) * (1 – Stockist Margin%)

Where:

  • MRP (Maximum Retail Price) is the final price at which the medicine is sold to consumers.
  • GST% is the applicable Goods and Services Tax on the product.
  • Retailer Margin% is the percentage margin given to retailers.
  • Stockist Margin% is the percentage margin given to stockists.
PTR & PTS Calculator

Importance of PTR & PTS in Pharma Pricing

Understanding the PTR & PTS calculation is crucial for:

  • Ensuring profitability across the supply chain.
  • Maintaining regulatory compliance with pricing norms.
  • Offering competitive prices in the pharmaceutical market.
  • Providing transparency to distributors and retailers.
  • Avoiding price manipulation in the supply chain.

Example Calculation of PTR & PTS

Let’s assume the following details for a pharmaceutical product:

  • MRP = ₹1000
  • GST = 12%
  • Retailer Margin = 20%
  • Stockist Margin = 10%

Step 1: Calculate PTS PTS = 1000 / (1 + 12%) * (1 – 20%) * (1 – 10%) PTS = 1000 / 1.12 * 0.80 * 0.90 PTS = ₹642.86

Step 2: Calculate PTR PTR = PTS + Stockist Margin PTR = 642.86 + (642.86 * 10%) PTR = 642.86 + 64.29 PTR = ₹707.15

Thus, the retailer purchases the product at ₹707.15, ensuring fair pricing in the supply chain.

Medoxca Pharma’s Pricing Transparency

At Medoxca Pharma, we believe in a transparent pricing model that benefits all stakeholders in the pharmaceutical distribution chain. We ensure that our PTR & PTS calculations are fair and competitive, allowing distributors and retailers to achieve sustainable margins.

Why Choose Medoxca Pharma?

  • Fair Margins: We offer balanced pricing that benefits stockists and retailers alike.
  • GST-Compliant Pricing: All our pricing structures follow GST norms.
  • Competitive Market Positioning: Our pricing ensures affordability without compromising on quality.
  • Regulatory Compliance: We adhere to government pricing guidelines.

Factors Affecting PTR & PTS in Pharma

Several factors impact the PTR & PTS calculations, including:

  1. Government Regulations – Price caps on essential medicines affect PTR & PTS.
  2. GST Rate Changes – Any change in tax rates impacts the final pricing.
  3. Raw Material Costs – Fluctuations in active pharmaceutical ingredient (API) costs affect PTS.
  4. Market Competition – Competitive pricing strategies influence PTR calculations.
  5. Distribution Network – The number of intermediaries affects pricing margins.

How to Use a PTR & PTS Calculator?

A PTR & PTS Calculator simplifies pricing calculations. Here’s how to use it:

  1. Enter the MRP of the product (inclusive of GST).
  2. Select the applicable GST rate (e.g., 5%, 12%, or 18%).
  3. Input the retailer and stockist margins (percentage values).
  4. Click calculate to determine the PTS and PTR.
  5. Verify the final price against your pricing strategy.

Medoxca Pharma’s Commitment to Fair Pricing

At Medoxca Pharma, we prioritize fair and transparent pricing to ensure:

  • Affordable medicine for consumers
  • Profitable business for retailers and stockists
  • Sustainable growth for distributors

The Role of Pricing in Pharmaceutical Supply Chain

Pricing is a critical factor in determining the success of a pharmaceutical product. Ensuring the right balance between affordability and profitability helps in market expansion and maintaining trust among healthcare professionals and consumers. Medoxca Pharma continuously works on optimizing pricing structures to provide cost-effective solutions while maintaining high product standards.

Future Trends in Pharma Pricing

  • Digital Pricing Models: AI-driven tools to optimize pricing in real-time.
  • Government Pricing Controls: Regulations impacting drug pricing trends.
  • Growth of Generic Medicines: Lower-cost alternatives influencing PTR & PTS calculations.
  • Global Market Trends: Impact of international pricing strategies on Indian pharma.

Conclusion

Understanding PTR & PTS calculations is vital for pharmaceutical businesses, ensuring fair margins across the supply chain. With Medoxca Pharma, you get a transparent pricing structure that benefits manufacturers, distributors, retailers, and consumers alike.

For more information on PTR & PTS Calculator and pharmaceutical pricing, connect with Medoxca Pharma today!

Scroll to Top