MRP

Key Highlights

• MRP means Maximum Retail Price. It is the maximum price at which a seller may sell a product to a buyer.

• The MRP is decided by the producer and covers cost of production, freight, taxes, and dealer margins.

What is MRP?

MRP means Maximum Retail Price. It is the maximum price at which a seller may sell a product to a buyer. The MRP is decided by the producer and covers cost of production, freight, taxes, and dealer margins.

Purpose of MRP

• Safeguard Consumers: Avoids charging extra and helps prevent people from being overcharged.

• Price Transparency: Facilitates consumers in comparing prices and getting a fair deal.

• Standardization: Helps have the same price everywhere and at every outlet.

What MRP Comprises?

• Cost of manufacturing

• Cost of packaging

• GST and other taxes

• Transport and logistics

• Margins of the distributor and the retailer

• Manufacturer's margin

Can a Product Be Sold Below MRP?

Yes. Products can be discounted or sold below MRP at the time of sale or offer. But the seller cannot charge beyond the printed MRP according to Indian law.

MRP Vs Selling Price

• MRP: Seller's highest ceiling.

• Selling Price: The price actually paid by a customer, which may be equal to or less than the MRP.

Legal Angle

According to the Legal Metrology Act (India), selling goods above MRP is an offense punishable by law. Customers can lodge complaints with the consumer court or on websites such as National Consumer Helpline.

Why MRP Matters in Finance & Business?

• Assists businesses in managing brand image and retail price strategy

• Influences profit margins and market positioning

• Contributes to inventory and supply chain management

Real-Life Tip for Consumers

Always verify the MRP before buying, particularly in establishments such as cinemas, airports, or tourist destinations where overcharging is more probable.