Lesson 2Trade TermsFree Preview

Gross-to-Net Bridge

Trace every deduction from gross list price to Net Sales Value — the commercial team's most-used diagnostic.

The Hook

The Hook

For every $1 of list price you invoice to the retailer, how much actually lands in Net Sales? In many FMCG categories, the answer is $0.55 to $0.70.

The Gross-to-Net bridge traces every deduction from gross invoiced revenue down to Net Sales Value. Prompt-pay discounts, volume discounts, conditional rebates, logistics allowances, returns, damages, listing fees, and promotional allowances each take their bite. Until you build the bridge layer by layer, you do not know which line items are absorbing the most value — and which are negotiable in the next agreement cycle.

Typical G2N deduction rate in FMCG30–45%

Key Concepts — preview of 3 of 5

3 concepts

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