What is the full form of MRP? The Full form of MRP is the Maximum Retail Price. MRP is a price that is calculated by the manufacturer of a product. It is the highest price that can be charged for a product sold in India and Bangladesh. However, retailers may choose to sell products for less than the MRP.
MRP comprises all the govt. taxes that are levied on that product and it is the highest price that can actually be charged from a customer/consumer for that product. However, retailers may sell the products to the customers for less than the MRP as per their profits.
How MRP differs from the Retail price?
- MRP differs from those using recommended retail price systems because in those systems the manufacturer calculated price is not enforceable by law and it is only a recommendation.
- All the products sold through retail must be marked with MRP in India. It is mandated that shops cannot charge over the MRP from the customers. Some retailers/shops may charge slightly below MRP to give a discount and attract more customers to their stores.
- The scope for sellers to sell products with MRP on the packaging to customers at a higher price becomes negligible.
It restricts the sellers to mislead the customers by charging anything extra above the MRP of the product. In India, there are instances that in popular tourist spots, in some remote areas, and in situations where a product is difficult to get, retailers often charge illegally over the MRP.
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