Commercial Maths Cheat Sheet
The Core Commercial Maths You Need to Know
This cheat sheet covers the essentials: Retail Selling Price, Retailer Margin, Promotional Mechanics, Impact Summary, Case Size, ROS, TradeāUp Logic, Price Laddering, and Cost Price. Master these fundamentals to secure your next big listing.
Commercial Maths Cheat Sheet Overview
A simple, practical guide to the essential numbers every supplier must understand to secure their next listing.
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RSP
Retail Selling Price: Understanding standard and promotional shopper price points.
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Case Size
Units per outer: Critical for logistics and wholesale tracking.
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Cost Price
Price to retailer: The anchor for your internal margin and profitability.
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Retailer Margin
Understanding buyer expectations and category profit norms.
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ROS & Uplift
Rate of Sale and promotional volume gain tracking.
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Trade-Up & Laddering
Premiumisation logic and category positioning vs competitors.
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Impact Summary
The final view of total profit and value generated over a 12-month period.
How to Use This Cheat Sheet, Step by Step
RSP (Retail Selling Price)
Why it matters
Influences shopper perception and volume expectations.
The price the shopper pays at the shelf. Essential for understanding your relative value.
Case Size
Why it matters
Correct case sizes are essential for logistics, accurate pricing, maximising retail sell-through and protecting the shelf life of your products.
The number of units in a single outer case. Affects retail stock handling and efficiency.
Cost Price
Cost price underpins your profit, your buyerās margin and your ability to fund promotions. Get it wrong and you either lose money or lose the listing.
Why it matters
Ensure you have all fixed and variable cost to produce built in.Ā
What you charge the retailer per unit or case. Your fundamental commercial anchor.
Retailer Margin
Why it matters
Crucial for securing buyer agreement and support.
The profit a retailer makes on your product. Buyers have strict category targets here.
ROS (Rate of Sale)
Why it matters
Why it matters
Determines if you stay on the shelf long-term.
Units sold per store per week. The ultimate measure of category performance.
Uplift
Why it matters
Helps plan volume and prove promotional value.
The increase in sales during a promotion. Shows the effectiveness of your activations.
Promotional Mechanics
Why it matters
Drives trial and manages category volume peaks.
How you discount (e.g., Multibuy, Price Cut). Varies significantly by retailer norm.
TradeāUp Logic
Why it matters
Buyers love stories that increase total basket spend.
Encouraging shoppers to spend more on a premium version. Adds value to the category.
Price Laddering
Why it matters
Ensures you are positioned credibly in the aisle.
Mapping your price versus competitors. Shows where you sit in the hierarchy.
Commercial Impact Summary
Why it matters
Summarises the business case for a listing.
The final view of total profit and value generated. The closing argument of your slide.
What Strong Commercial Maths Looks Like
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Clear
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Simple
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Category-aligned
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Credible
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Easy to explain
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Easy for buyers to understand
Common Mistakes to Avoid
- Over-complicated commercial slides
- Unreasonable ROS assumptions
- Weak margin clarity
- No promotional plan
- No trade-up logic
- No category benchmarking
Quick Wins to Improve Your Commercial Story
- Use category benchmarks
- Keep numbers simple
- Build a clear 12-month promo plan
- Map your price ladder visually
- Align margin with category norms
Next Steps for Supplier Success
Ready to master your retail story? Start taking these actions today to build credibility and secure your next big listing.
- Build your commercial slide
- Download the Supplier Starter Pack
- Complete the Supplier Scorecard
- Explore the Learning Hub resources
- Book a Supplier Consultation