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🧮 Margin Calculator Guide
A guide to use Lexir's sales margin calculator. Use it to understand your margins selling B2B, with a full cost breakdown per bottle.
This calculator should be used as an estimate. The goal is to give you a reasonably close approximation of the associated costs. Please note that it may not cover all situations.
NOTE: This calculator is currently only available for B2B Sales Margins for 🇫🇷France. More coming soon!
When you first open the page, you will already see some numbers. These are just default input values that you can replace with your own.
Set your target B2B price for your target market. This is the starting value that the costs will be subtracted from to calculate your margins. For France an “HT” price means “hors taxe” meaning that the price does not include sales tax.
Note: When you work with Lexir, you have full control of your prices and have the freedom to change them at any time!
Select the type of product you’d like to calculate margins for. Each of them have different tax values associated with them. The current values include:
Spirits, Wine, Sparkling Wine, Beer, Ciders/Pears/Hydromel, Fermented Other, No ABV
Note: Some product types require additional questions that affect the tax values. You will see those below in the grey box.
Select your Lexir plan to be used to calculate the Lexir commission rate. Find our plans and current rates here. Most brands joining Lexir for the first time start on our “Essentials” plan.
Specify the size (i.e. volume) of the product in millilitres. This is necessary for tax purposes. Some product types are taxed based on hectolitres (such as wine), while others are taxed based on a calculated hectolitres of pure alcohol (such as spirits), which takes into account the product’s ABV.
Specify the ABV (alcohol by volume) of the product. This is necessary for tax purposes.
Select whether you want to calculate your margins including a sales rep commission. In the dropdown, we included some of the most common sales commission rates.
The section at the bottom of the page includes a full cost breakdown of your margins per bottle.
These numbers are displayed in 3 columns representing different order quantities that affect the costs per bottle in terms of last mile delivery costs.
After setting your inputs, click the “Calculate Margins” button to see the numbers relevant to your inputs. Your numbers will change right away (no loading animation is shown for example).
In France, taxes on alcohol products are broken down into two categories:
- Excise Duties (DA): duties payable on all alcohol products
- Social Charges (CSS): payable on certain alcohol product sin addition to duties
Logistics costs are made up of three values. Each of these values decrease per bottle when bought at larger quantities due to economies of scale.
- Payment Processing: costs related to processing your payments. It is calculated on a per order basis with the formula: €0.25 + 1.5%
- Order Processing: Fulfillment costs, picking and packing of the goods from our warehouse
- Last Mile Delivery: associated shipping costs
Sales rep commissions are calculated after taxes, logistics.
Lexir’s commission are calculated after taxes, logistics, and sales rep commissions. The rate is based on your selected Lexir plan. More advanced plans have lower commission rates. Find our current plans and rates here.
The brand margin (Sales margin) is calculated after all taxes, logistics, sales rep commissions and Lexir commissions. It is displayed as a euro value and a percentage of your starting price.
The forumla to calculate your sales margin
Note: Feel free to go back and calculate as many variations as you would like!