PTR / PTS Calculator
PTR and PTS Calculator with GST
Rate estimates for the partners and retailers in the pharmaceutical industry have grown challenging since the Government of India implemented GST. GST calculations have undergone many revisions, and it is now more difficult to determine a product's rate.
Do not fear; we have made it easier for our merchants and associates to determine the cost of any pharmaceutical product. Knowing the terms used for determining a product's rate is preferable before continuing.
To enlighten our team of associates & retailers, we explain the terms below:
PTRPrice to Retailer. It is the price to be given by the retailer to the stockist. GST is not included in PTR.
PTSPrice to the stockist. It is the price at which any pharma company will charge its products from stockists or distributors. GST is not included in PTS
MRPMaximum Retail Price. It is the price to be given by customers at the time of buying any pharma product from a retail pharmacy store. It may be noted that the MRP rate is inclusive of GST. Now, let us proceed with the calculation of rates.
To arrive at the price for the retailer (PTR), we must consider the net margin (including GST) and the factor of GST.
Net Margin = MRP - Retail %
GST Factor = 100 + GST% / 100
PTR = Net margin / GST Factor
Calculation of PTS
PTS = PTR - Stockist %
Calculate PTR & PTS with Accuracy
The PTR & PTS calculator is used to simplify pharma pricing calculations by delivering accurate results. These results are based in MRP, retailer margin, GST percentage, and stocklist margin. With the help of accurate PTR and PTS calculation, companies can improve profitability by maintaining transparency. This tools is really beneficial for distributors, retailers, pharma franchise partners, and stockist.
How PTR and PTS Help in Pharmaceutical Business Planning
This tool plays imperative role in pharma business planning. Both PTR and PTS are crucial metrics in the pharma market. This calculation helps distributors, pharma companies, retailers, and stocklists, in maintaining a transparent pricing structure while ensuring profitability at every level of supply chain. This tool determine the earning potential of products before investing in inventory. It is the best tool for pharma franchise partners because the calculations which are performed by the PTR and PTS also assist in maintaining consistency in different regions and markets.
Key Components Used in PTR and PTS Calculation
| Component | Description |
| MRP | Maximum Retail Price charged to the customer |
| GST | Applicable Goods & Services Tax percentage |
| Retailer Margin | Financial return earned by the retailer |
| Stockist Margin | Profit margin earned by the stockist or distributor |
| PTR | Price at which stockists supply products to retailers |
| PTS | Price at which pharma organizations supply products to stockists |
Frequently Asked Questions
What is PTR in pharma industry?PTR(Price to Retailer) is a price in which stocklists sell pharma products excluding GST to retailers.
Does PTR include GST?No, PTR does not include GST. It is calculated without it.
What is PTS in pharma?PTS(Price to Stocklist) is a price in which pharma organizations supply pharma products to stocklists or distorbutors, without including GST.
Is GST included in PTS?No, GST is not included in PTS. PTS is calculated without GST.
Why is PTR crucial in pharma market?It is really important because PTR determine retailer margins as well as ensures accurate pricing throughout the entire distribution network.
How does GST affect PTR and PTS calculations?GST affects the final pricing structure of pharma products. Because, accurate GST consideration is important to calculate correct as well as accurate PTR and PTS values.
For Whom is this PTR and PTS Calculator tool?This highly beneficial tool is for pharma companies, distributors, PCD pharma franchise partners, retailers, stocklists, wholesalers, and other healthcare suppliers.
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