Direct product profitability

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Direct product profitability (DDP) is a way of measuring a product's handling costs from the time it reaches the warehouse until a customer buys it in the retail store.

Definition

According to Marketing Management by Keller and Kotler (15th edition),

Direct product profitability (DDP). A way of measuring a product's handling costs from the time it reaches the warehouse until a customer buys it in the retail store.