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Recommended Retail Price (RRP)

Disciplines > Marketing > Pricing > Recommended Retail Price (RRP)

Description | Example | Discussion | See also

Description

In a sale, one way of displaying prices is to show the recommended retail price (often abbreviated to RRP) and then the actual sale price.

This may also be used in everyday practice, indicating how the price is a 'bargain' in comparison to the normal price.

Typically, the 'RRP' is shown with a strike-out line through it, either before or after the actual price.

Example

A store uses labels with a bold 'RRP' with the price struck out and 'Our price' placed underneath it.

A sale is marked as '25% off recommended price for all items'.

A sales person's spiel includes the comment that 'the recommended retail price for this is $50, but I can offer it today for only $35'.

Discussion

There are a number of variants on the RRP name, such as 'recommended price', 'manufacturer's price', 'full price' and so on. The effect is the same, that the sign indicates that a discount is being offered.

In practice, the 'recommended retail price' is a fiction in many retail industries, where manufacturers issue the list simply as a tool for retailers and the everyday price is always somewhat lower.

See also

Discounting, Discountable Pricing