How do I know whether a wholesale account is actually profitable?
Build a profit and loss for the account. Start from its revenue at its prices, subtract landed cost, then every cost it specifically causes: trade spend and promotional funding, slotting, deductions and chargebacks, dedicated packaging, freight terms, and the cost of financing its payment terms. Large accounts frequently look worse than expected here.
The costs that decide the answer arrive after the sale and land in different ledgers. Revenue is reported per account and deductions usually are not, which is what keeps an unprofitable relationship looking like the biggest one.
Terms in this answer
Related questions
More on Wholesale & B2B, or browse every commerce operations answer.
See it on your channels.
Spend your time on the business, not the busywork. Book a demo and watch Endless run your operations across every channel you sell on.
Get a Demo