mrp full form

mrp full form
MRP refers to “Maximum Retail Price” or full form of MRP is “Maximum Retail Price”.
Maximum retail price - SBNRI | MRP Full Form - SBNRI
 
Retail Pricing
Concept of Retail Pricing 
  • Integral part of retail marketing mix
  • Source of revenue for the retailer 
  • Communicate the image of the retail store 
Factors that need to be taken into consideration
  • Demand for the product and the target market
  • Store policies and the images to be created 
  • Competition for the product and the competitor’s price
  • Economic conditions prevailing at that time 
Elements of Retail Price 
 
S.No.
 
Elements
 
Description

 
 
1.
 
Cost of goods
 
Cost of Merchandize 
Expenses incurred towards transportation
Taxes, duties levies etc.
 
2. 
 
Expenses Incurred
 
Fixed Expenses 
Variable Expanses
 
3. 
 
Fixed Expenses
 
Expenses that do not vary with quantum of business 
e.g., Shop rent, Head office costs etc.
 
4. 
 
Variable Expenses 
 
Level of sales directly effects variable expenses.
e.g., Merchandise margins, product mix costs Their management either enhances or destroy profitability.
 
Fixing The Retail Price
Consideration: Profit to be earned
                           Profit from Merchandise planed before price fixation
                           Profit to be arrived at is expressed as a markup 
                           Percentage.
 
 
Retail Price = Cost + MarkUp    
      Or Cost = Retail Price – Markup
 Or Mark up = Retail price - Cost