Recommended Retail Price (RRP) is the suggested selling price set by the manufacturer or distributor of a product. It serves as a guideline for retailers to establish the selling price to consumers. The RRP is based on various factors, including production costs, market demand, competition, and desired profit margins.
While retailers are not obligated to adhere to the RRP, it helps maintain price consistency across different sellers and ensures a level playing field. Retailers may choose to sell products below or above the RRP based on their individual strategies, market conditions, and promotions. Consumers can use the RRP as a reference point when comparing prices and evaluating the value of a product. However, it’s important to note that actual selling prices may vary depending on discounts, seasonal offers, and other market dynamics.