mrp full form

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mrp full form

MRP refers to “Maximum Retail Price” or full form of MRP is “Maximum Retail Price”.

 

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