mrp full form
mrp full form
MRP refers to “Maximum Retail Price” or full form of MRP is “Maximum Retail Price”.
Retail Pricing
Concept of Retail Pricing
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Integral part of retail marketing mix
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Source of revenue for the retailer
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Communicate the image of the retail store
Factors that need to be taken into consideration
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Demand for the product and the target market
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Store policies and the images to be created
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Competition for the product and the competitor’s price
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Economic conditions prevailing at that time
Elements of Retail Price
S.No.
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Elements
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Description
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1.
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Cost of goods
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Cost of Merchandize
Expenses incurred towards transportation
Taxes, duties levies etc.
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2.
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Expenses Incurred
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Fixed Expenses
Variable Expanses
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3.
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Fixed Expenses
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Expenses that do not vary with quantum of business
e.g., Shop rent, Head office costs etc.
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4.
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Variable Expenses
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Level of sales directly effects variable expenses.
e.g., Merchandise margins, product mix costs Their management either enhances or destroy profitability.
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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