Margin codes—also known as discount codes—are alphabetical codes used in the promotional products industry to indicate the net price a distributor pays for a product based on its suggested retail price. Each letter corresponds to a specific profit margin percentage the distributor earns when selling the item.
For example:
If a product has a retail price of $5.00 and a margin code of A (50%), the distributor’s net cost would be $2.50.
Standard Industry Margin Codes
Below are the commonly recognized margin/discount codes and their associated margin percentages:
| Code | Margin % | Code | Margin % |
|---|---|---|---|
| A | 50% | L | 70% |
| B | 45% | M | 65% |
| C | 40% | N | 60% |
| D | 35% | O | 55% |
| E | 30% | P | 50% |
| F | 25% | Q | 45% |
| G | 20% | R | 40% |
| H | 15% | S | 35% |
| I | 10% | T | 30% |
| J | 5% | U | 25% |
| K | 0% | V | 20% |
| W | 15% | ||
| X | 10% | ||
| Y | 5% | ||
| Z | 0% |
Understanding Repeated Codes
Margin percentages A–K are repeated in the codes P–Z.
For example:
- A = 50% margin
- P = 50% margin
Both letters represent the same profit level.
Margin Codes in Pricing Tables
Below a supplier’s pricing table, you may see one or more margin code letters corresponding to each pricing tier. For example:
- If a product has three pricing levels and all share the same discount, you may see AAA beneath the price grid.
This indicates that each price level uses the same margin code.