MRP Full Form: What is MRP Stands For? Check Full Name Here

MRP Full Form: MRP stands for Maximum Retail Price. It is the uppermost price at which an item/product can be sold to the public. It is visible on the packaging and covers all taxes. Manufacturers or sellers decide the MRP after considering numerous parameters, including production, promotion, and profit. Going forward, the term MRP can have different interpretations depending on the context and situation. Continue reading to learn the complete details of MRP full form, including its features, objectives, criticisms, and various meanings.

MRP Full Form: What is the Full Form of MRP?

The full form of MRP is Maximum Retail Price. It is the uppermost charge fixed by a manufacturer or retailer for a product/item. It aims to protect buyers from paying extremely high prices for any product. You can usually find it on the product label, along with details like usage instructions, ingredients, and expiration date. The product sold by the retailers cannot exceed the MRP. But, they may offer lower prices to draw more shoppers. In some tourist areas, far-off locations, or for hard-to-get items, sellers sometimes increase the price illegally. Apart from this, the MRP have other meanings as well. Its full form in medicine is Multiple Drug Resistance Related Protein, Medical Review Policy, and Motility Related Protein.

MRP Full Form: Objective of the Maximum Retail Price

The Maximum Retail Price (MRP) is the highest amount a buyer can be charged for a product. Given below are a few objectives of MRP for reference purposes:

• MRP prevents retailers from selling a product for more than its maximum price.

• It helps maintain fair pricing by stopping retailers from charging too much for a product.

• It promotes transparency by disclosing the maximum price that the buyer needs to pay for the product.

• MRP allows hassle-free price comparison between products by showcasing it on the packaging.

MRP Full Form: Features of the Maximum Retail Price

There is a plethora of features of MRP that benefit both consumers and retailers. Given below are a few features of the maximum retail price for clarity purposes:

• It is the maximum charge that a manufacturer or retailer can ask for a product.

• It appears on the product label along with details like usage instructions, ingredients, and expiration date.

• It is fixed by the manufacturer or retailer to ensure buyers are not overcharged.

• Any admissible taxes, such as sales tax or VAT, are often part of the MRP.

How to Compute MRP?

The full name of MRP is Maximum Retail Price. It refers to the final price paid by the buyers to purchase any product. The seller cannot charge more than the MRP, but they can sell it cheaper. It covers all the taxes, and additional charges are allowed only if clearly mentioned. The following components are considered to compute MRP:

• Manufacturing Price

• Packaging Price

• CNF Margin

• Profit Margin 

• Stockist Margin 

• Transportation Cost

• GST 

• Retailer Margin

• Marketing/Advertising Expense

• Miscellaneous Expense, etc.

MRP Full Form: Rules of MRP After GST

Listed below are the important rules for MRP after GST came into effect in India:

• MRP must appear on the product label or package.

• GST and other taxes should be a part of the MRP.

• The MRP must stay constant for a certain period and cannot be modified often.

• MRP should not be below the real cost of the product.

• Any MRP hike must not exceed the percentage rise in the wholesale cost of any item or product.

Criticism of the Maximum Retail Price (MRP)

MRP is a pricing method where the manufacturer and retailer fix the highest price for an item/product. It is visible on the package, and charging more than the fixed price is not permitted. The following points highlight the limitations of the MRP system.

• The MRP may not represent the product’s real market price.

• The MRP system may cause products to be costlier for buyers.

• Establishing a fixed MRP by mutual agreement can reduce competition and make products more expensive.