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Profit formula in supply chain.

Although there is profit chain from the production of a goods to the selling of the product, I believe the producer are the ones that will get the highest profit followed by the wholeseller and lastly the retailer.
 
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Nah! This is very very untruy. The manufacturers take the lion share of any product that is produced, next to the retailers before you will find distributors.
 
When it concerns discussing of revenue amongst the source chain, I do not concur along with your evaluation or even viewpoint since in the genuine feeling, the manufacturers takes the mass of the revenue scope, while the supplier happens a far-off following, prior to the seller, I can easily particularly place a number or even portion to it currently.
 
I do not accept to that theory backing up your statement to me I feel the lower the chain of production the lower the profit I can't have lesser profit as a producer,and my buyers earn more than me
 
Though the percentage is a good one for the retailers,because in the actual sence,the producer have the leverage of huge stock and can get good reurns from selling out huge quantity with lower percentage.
 
In most cases the producers here are termed as manufacturers. Now the manufacturers sells the finished goods to distributors normally in very large bulky quantity. Then the distributors now sells the same merchandise to wholesalers also in large quantities. It's the wholesalers now that sells to retailers that finally sells the goods to consumers. The consumers are the last person to handle the merchandise and normal they buy from retailers for the aim of consumptional purposes only.
 
Mostly this will depend on what you have to offer. Most of the business with new technologies and invention will definitely becomes more renown than business that deals with general goods and services.
 
If you buy directly from the manufacturer, instead of the supplier or distributor, you will have better room for setting high profit margins. These days with the presence of B2B marketplaces like Alibaba, it is possible to direrctly buy form manufacturer.
 
If you buy directly from the manufacturer, instead of the supplier or distributor, you will have better room for setting high profit margins. These days with the presence of B2B marketplaces like Alibaba, it is possible to direrctly buy form manufacturer.

I am quite sure that manufacturers never supply the products to the customers directly. If this were the case, then all the people would have had bought products directly from the manufacturer. When it comes to supply chain, the product goes through different kinds of processes that might be a part of the supply chain. Only wholesalers buy products from manufacturers directly s they purchase the products in bulk quantities.
 
If you're the patient entrepreneur, you're going to pick being the retail seller to the final consumers because they make more profits from the products than the producer and wholesalers. If you can find a way to be having more turn over, you're going to grow faster.
 

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