Business math for dealers
Target slabs and scheme payouts, effective margin after credit notes and rebates, warranty claims, workshop revenue per bay and per job, channel finance and inventory days, working capital for minimum stock, and showroom ROI and payback.
A dealer's real margin is spread across invoices, schemes, rebates, credit notes and the workshop, and a good part of it is eaten by interest on stock. These pages show the everyday dealer arithmetic: when a target slab is worth chasing, what you really keep, and whether a showroom pays back.
Each topic has a plain-words explanation, the standard formulas with their terms, worked examples at three levels (Basic Intermediate Advanced), and a quiz that tells you instantly whether you were right and why.
Every number on these pages is calculated by a script and checked against the page before it is published.
- Targets, schemes and effective marginRetrospective and incremental slabs, what the last few lakh of purchases are really worth, and your margin after schemes, rebates and credit notes.6 worked examples · 12 quiz questions
- Warranty claims and workshop revenueClaim rates and the unreimbursed cost of warranty; revenue per bay and per job, bay utilisation, workshop break-even and adding a bay.6 worked examples · 12 quiz questions
- Stock financing and minimum-stock working capitalChannel finance interest, interest-free days, inventory days, and the working capital a brand's minimum stock and deposit lock up.6 worked examples · 12 quiz questions
- Return on investment and payback for a dealershipROI on the total investment, payback with equal and uneven cash flows, and comparing two showrooms.3 worked examples · 6 quiz questions
- Mixed quizQuestions across all topics, basic to advanced.12 quiz questions
Related topics on other levels. Much of dealer math builds on trader basics: margins, markups and discounts, simple and compound interest (for channel finance), stock turnover and the cash cycle, and break-even (for the workshop). For costing and supplier pricing, see manufacturer business math.
How numbers are rounded on these pages. Calculations are done at full precision and rounded only at the end, half up. Rupee amounts are rounded to the nearest rupee unless shown with paise, in which case to the nearest paisa. Percentages are shown to two decimal places, days to one decimal place, and payback periods in years to two decimal places. Interest for a number of days uses a 365-day year (simple interest). Break-even job counts and units needed to cover a cost are rounded up to the next whole number. All examples and quiz questions are Hypothetical: they show the method, not real prices or rates.