Sales Tool 28

Key account profit.
After all the costs the buyer does not show you.

Not all large accounts are profitable. Model the true P&L on your key accounts after deductions, support costs, slotting, co-op, special terms, and sales overhead.

1Account Revenue

Annual Account Revenue ($)

Account COGS % (gross)

Gross Margin ($)

2Account-Specific Deductions

Slotting / Placement Fee ($)

Co-op / MDF (% of rev)

Freight Allowance (% of rev)

Returns / RTV Rate (%)

Early Pay Discount (%)

% Taking EPD

3Account Support Cost

Dedicated Sales Time (hrs/mo)

Sales Rep Cost ($/hr blended)

Account Mgmt Overhead ($/mo)

Annual Samples / Marketing ($)

Total Support Cost ($)

Account Net Margin-

Gross
Margin %

Net
Margin %

Deductions
Rate %

Account P&L Waterfall

Gross revenue-

COGS-

Gross Margin-

Slotting-

Co-op / MDF-

Freight allowance-

RTV / returns-

EPD cost-

Revenue After Deductions-

Sales support cost-

Account mgmt overhead-

Samples / marketing-

Account Net Margin-

vs Portfolio Average

Metric	This Account	Portfolio Target

Key account profit.After all the costs the buyer does not show you.

Key account profit.
After all the costs the buyer does not show you.