What is the percentage of cash that reaches the product's company?

The percentage of cash that reaches a product's company can vary depending on various factors such as the distribution channel, retail markup, and other intermediaries involved. Typically, a product's company will receive a smaller percentage of the retail price than the actual cost of production. In traditional brick-and-mortar retail, for example, the manufacturer or supplier may only receive around 30-40% of the final retail price, with the rest going towards retailer profits and operating costs. However, with the rise of direct-to-consumer models and e-commerce platforms, companies can potentially capture a larger percentage of the cash flow as they bypass certain intermediaries. Ultimately, understanding the specific industry and distribution channels is crucial in determining the percentage of cash that a product's company receives.

This mind map was published on 19 October 2023 and has been viewed 64 times.