Front and Back Trade Margin

17:09 Jul 19, 2019
English to German translations [PRO]
Bus/Financial - Finance (general)
English term or phrase: Front and Back Trade Margin
Leider habe ich keinen direkten Kontext. Es handelt sich um eine Präsentation für eine Schulung für Pharmareferenten, in der die Schulungsteilnehmer die Marge berechnen müssen.
Monica Schmid
Germany
Local time: 14:31


Summary of answers provided
3Bruttohandelsspanne und Prozente
Barbara Schmidt, M.A. (X)
3Bruttogewinnspanne und Rabattspanne / Bruttogewinnmarge und Rabattmarge
D. I. Verrelli
Summary of reference entries provided
Skonto ist kein Rabatt
D. I. Verrelli

Discussion entries: 5





  

Answers


1 hr   confidence: Answerer confidence 3/5Answerer confidence 3/5
front and back trade margin
Bruttohandelsspanne und Prozente


Explanation:
front margin - Bruttogewinnspanne, Bruttomarge, Bruttohandelsspanne
back margin - Rabatt, Prozente


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Note added at 1 Stunde (2019-07-19 18:26:45 GMT)
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https://www.quora.com/How-does-a-front-and-a-back-margin-dif...

Example:

Store X buys dog food from a manufacturer for $20.00.

Store X likes to take a 20% margin on their products from invoice. So $20.00/(1-.20)=$25.00

The Front margin is $5.00, or more generally 20% for their dog food category.

Little do the customers know, there is a “back end promo” in place that for ever bag of dog food Store X sells they get a rebate from the manufacturer for $2.00. The $2.00 (or 10% of invoiced cost) is a “back margin”.



Barbara Schmidt, M.A. (X)
Germany
Local time: 14:31
Native speaker of: German
PRO pts in category: 4
Notes to answerer
Asker: Danke für deinen Link Barbara, den hatte ich auch gefunden und es ist mir auch klar, was die beiden Begriffe bedeuten, aber ich finde keinen deutschen Begriff für "Back Margin". Front Margin scheint wirklich die Bruttomarge zu sein.

Asker: Ich glaube man nennt es Skontomarge


Peer comments on this answer (and responses from the answerer)
neutral  D. I. Verrelli: Did you mean "Rabattprozent(e)"? "Prozente" alone doesn't communicate "Back Margin" to me.
4 days
  -> Ja, Rabattprozente oder Preisnachlass. Danke für den Hinweis!
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4 days   confidence: Answerer confidence 3/5Answerer confidence 3/5
front and back trade margin
Bruttogewinnspanne und Rabattspanne / Bruttogewinnmarge und Rabattmarge


Explanation:
FRONT MARGIN:
"Bruttogewinnmarge" and "bruttogewinnspanne" both seem OK.
Although "bruttogewinnspanne" had somewhat fewer 'hits', I'd prefer to consistently use either "-marge" or "-spanne" for both, and "Rabattspanne" had many more hits than "Rabattmarge" (vide infra).
https://www.bing.com/search?q=+"Bruttogewinnmarge" (22500)
https://www.bing.com/search?q=+"Bruttogewinnspanne" (8010)

"Front margin" does appear to tend to connote the gross difference between selling price (actually paid by the customer) and the (gross) purchase cost of those same goods that were sold.
https://www.quora.com/How-does-a-front-and-a-back-margin-dif...
https://www.answers.com/Q/What_is_the_difference_between_a_f...
https://www.kamcity.com/kamwords/front-margin/
See also
https://smallbusiness.chron.com/definition-retail-margin-237...
https://www.investopedia.com/ask/answers/101314/what-are-mai...
https://www.investopedia.com/terms/c/cogs.asp

If the definitions at the above sites are to be read literally, then it seems to me that this "front margin" would not be 'adjusted' for any sales tax (VAT, GST, etc.); that is, the prices and costs would include taxes that were paid. Furthermore there would be no inclusion of purchase costs of goods that spoiled or were stolen and hence were never sold — although such expenses should be included in overall measures of profitability.

With that in mind, "Bruttohandelsspanne" appears not to deal with tax in the desired way, according to the Wikipedia article.
https://de.wikipedia.org/wiki/Handelsspanne#Berechnung
But see also
https://www.blitzrechner.de/marge-berechnen/
https://www.unternehmerlexikon.de/marge/

And "Bruttomarge" appears to be less specific, so the ambiguity may lead to interpretations different to the intended one.

Perhaps "(brutto)gewinnmarge" is OK.
https://debitoor.de/gruenderlounge/unternehmensgruendung/pre...

One can also say "Aufschlagsspanne" or "Aufschlagsmarge", or else "Abchlagsspanne" or "Abschlagsmarge"
https://www.blitzrechner.de/marge-berechnen/
of which "Aufschlagsspanne" and "Abschlagsspanne" appear to be the more common.
https://www.bing.com/search?q=+"Aufschlagsspanne" (959)
https://www.bing.com/search?q=+"Aufschlagsmarge" (95)
https://www.bing.com/search?q=+Abschlagsspanne (1920)
https://www.bing.com/search?q=+Abschlagsmarge (1110)
Based on the answer quoted from Quora by Barbara Schmidt, and by analogy to the information on "direct cost margin" at Investopedia (vide infra), it seems to be common practice to compute the margin relative to the selling price (or revenue), rather than relative to the purchase cost. Therefore the more relevant is "Abschlagsspanne".
These apparently are also excluding sales tax (MwSt.), and so they may not be suitable.
https://www.blitzrechner.de/marge-berechnen/
https://de.wikipedia.org/wiki/Handelsspanne#Arten

If you really get into the details, there are also all sorts of other questions, such as whether the purchase costs should be the actual purchase costs of the goods that were physically sold (as implied in the definitions above for Front Margin), or whether they should be the hypothetical purchase costs if the goods that were sold had been purchased from the supplier on the same day that they were sold to the customer (which may be called the "trade margin").
https://stats.oecd.org/glossary/detail.asp?ID=2743

Per the post in the Discussion above, translation into some other languages suggested that "Direktmarge" or "Direktspanne" could have been options, but there is very little support for those terms from online searching.
https://www.bing.com/search?q=+Direktmarge (13)
https://www.bing.com/search?q=+Direktspanne (0)

It is of note that the "front margin" seems to be similar to the "direct cost margin", with the "direct cost margin" (= "gross margin") expressed relative to the selling price (or the revenue).
https://www.investopedia.com/ask/answers/062215/how-direct-c...
https://www.investopedia.com/terms/g/grossmargin.asp

BACK MARGIN:
Following Barbara Schmidt's input, "Rabattprozent" could be an option.
In the same vein, one can also find "Rabattspanne" and "Rabattmarge"
https://browse.dict.cc/deutsch-englisch/Rabattspanne.html
https://browse.dict.cc/deutsch-spanisch/Rabattmarge.html

Of these three, "Rabattspanne" appears to be most common.
https://www.bing.com/search?q=+"Rabattprozent" (725)
https://www.bing.com/search?q=+"Rabattspanne" (2770)
https://www.bing.com/search?q=+"Rabattmarge" (43)

Another idea was "Rückvergütungsmarge"
https://www.motor-talk.de/forum/sind-auch-haendler-aus-dem-n...
Although this sounded good to me, it is apparently very uncommon
https://www.bing.com/search?q=+"Rückvergütungsmarge&quo... (1)

If the "Back Margin" is calculated relative to the purchase cost, then it would be (in a sense) incompatible with a "Front Margin" calculated relative to the selling price.
Conversely, if the "Back Margin" is calculated relative to the selling price, then it would be totally different to the offer quoted by the supplier!

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Note added at 4 days (2019-07-24 13:38:15 GMT)
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BACK MARGIN
Two more options for "Back Margin" are "Rückzahlungsspanne" and "Rückzahlungsmarge", to emphasise that the rebates/refunds are received subsequent to the purchase from the supplier.
https://www.bing.com/search?q=+Rückzahlungsspanne (12)
https://www.bing.com/search?q=+Rückzahlungsmarge (4)

D. I. Verrelli
Australia
Local time: 00:31
Native speaker of: Native in EnglishEnglish
PRO pts in category: 4
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Reference comments


4 days
Reference: Skonto ist kein Rabatt

Reference information:
~~~~
Ein Skonto, der für eine vorfristige Zahlung eingeräumt wird, ist etwas anderes als ein Rabatt, sagt das Landgericht Aschaffenburg [...]. [...].

[...]. Diese hatte dagegen geklagt, dass AEP zusätzlich zum Rabatt von 3 Prozent noch 2,5 Prozent Skonto gibt. Das sei mehr als der nach Arzneimittelpreisverordnung (AMPreisV) zulässige Höchst­rabatt, der auf die Höhe der prozentualen Großhandelsmarge von 3,15 Prozent beschränkt sei. Doch Skonti und Rabatte sind für Richterin Ursula Schäfer zweifelsfrei unterschiedliche Sachverhalte: „Diese Begriffe mögen sprachlich synonym sein, jedoch kaufmännisch und buchhalterisch gesehen, sind sie es nicht“.
~~~~~
https://www.deutsche-apotheker-zeitung.de/daz-az/2015/az-45-...

See the link for more details.

One important point is that even though the terms might seem like synonyms to the lay person, in specialised contexts — such as pharmaceutical commerce (which is apparently the Asker's context) — the terms may describe totally separate features.

A minor point is to take note of the 'irregular' plural form used.

D. I. Verrelli
Australia
Native speaker of: Native in EnglishEnglish
PRO pts in category: 4
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