What Price RRP?

Discussion in 'Finance, Property, Law' started by sirbhp, Dec 8, 2012.

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  1. sirbhp

    sirbhp LE Book Reviewer

    Been out today doing some chrimbo shopping . I noticed that for example TKMAXX was selling stuff at up to 60% of RRP.
    So were lots of other shops . But what is RRP? Apart from Levis, which never seem to be discounted isn't everything sold below RRP, and if this is so why isn't RRP banned? I could recommend that a comb should be sold for a thousand pounds but you can have it for a fiver couldn't I ?

    confused of sarfend. Also saw shop selling at 40% off rrp and their goods were dearer than some other stores in the high road .
  2. When I worked in a local PC shop we used to order our stock in per unit price. With each product, they'd give us the recommended retail price, which was usually calculated to be 30% on top of what we were buying it for. Didn't have to sell it for that, mind.

    If we ever got free stock for some reason, or found ourselves with older stuff, we'd sell it for much cheaper than the RRP. Just sales method - if somethings recommended to be sold at £50 and you sell it for £45, you look better.

    Same reason we still insist on making things £49.99 and claiming it's under £50.
  3. RRP is something stores do so they can show a discount. The discount generally takes the product to its normal selling price.
  4. Recommended Retail Price is usually set by the manufacturer. Shops can sell at that or below depending on greed or need...
  5. ISTR, from O-level Economics (failed), many years ago, there was something called Retail Price Maintenance, a statutory thing which allowed manufacturers to set a selling price. This was abolished years ago, except I believe for Books, but even that doesn't apply now (e.g. amazon). So, RRP means nothing.

    Also vaguely remember that legally speaking any ticket price is open to negotiation, its a contract, like the barter system in arab countries, which we don't really do.