Direct product profitability

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.