MRP (Maximum Retail Price)
The legally mandated ceiling price printed on every packaged product in India, inclusive of all taxes.
Full definition
MRP stands for Maximum Retail Price, the highest price at which a packaged product can legally be sold to a consumer in India, as mandated by the Legal Metrology Act. Every packaged good must print its MRP on the label, and retailers cannot charge above MRP; they can, however, sell below it.
MRP is inclusive of all taxes including GST, which means a change in GST rate triggers an MRP revision. For dairy and FMCG brands, MRP also varies by state (due to historical local tax differences and state-specific pricing strategies) and by pack size. A product master must therefore support state-wise and time-versioned MRP.
The difference between MRP and the billing price to the distributor is called margin, and it is divided across all downstream channel layers, distributor, wholesaler, and retailer.
Real-world example
Amul Butter 100 g has an MRP of Rs 62 printed on the pack; the distributor bills the retailer at Rs 56, giving the retailer Rs 6 margin.
Where it applies
Applicable industries
This term is relevant across the following SpireStock-supported industries.
How SpireStock handles it
Related SpireStock features
The concepts described above are implemented end-to-end in these product modules.
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