Common Contracts

Contract

August 6th, 2015

• Filed
  August 6th, 2015

List-price discount: Yet the main remuneration component is the gross margin, meaning the difference between the distributor’s purchase price and his resale price to the (end) customer. The distributor is normally granted a discount on the principal’s list price. This difference minus the distributor’s costs for administra- tion, warehousing, marketing, logistics and overhead costs constitutes the distrib- utor’s net income. The distributor may, to a certain extent, unilaterally influence his net income, as he is generally free to determine the resale price.