What is GMI and how to manage it? The abbreviation GMI can often be found in the vocabulary of a distributor, it stands for Gross Marginal Income.
The first word that comes to mind is “revenue,” but Gross Marginal Income is a more accurate term that shows how much money the company makes from the difference between the sale price of a product and its cost
Suppose a distributor sold a product in a month and earned $1,000 for it. At the same time, the cost price, the cost of delivery, the work of employees and the rental of storage facilities amounted to $600. The calculation of marginal profit will look like this: $1000 - $600= $400 (or 40% of revenue).
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