FULL FORM OF MRP

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WHAT IS MRP

         MRP stand for maximum retail price. It is the price calculated by the manufacturer and it is the highest price that can be charged for a product sold in India. All retail products in India must be marked with MRP. Shopkeepers cannot charge more price than the maximum retail price printed on the product. However retailer may sell products less than the MRP to attract customers to their shop.

HOW MRP IS DECIDED

        The maximum retail price of a product is fixed by the manufacturer only,government does not have any role to play in deciding the price of the product. The maximum retail price of a product is calculated by the manufacturers on the basis of various aspects like production cost of the product,taxes which is to be paid,transportation cost,freight,commission paid to retailers,advertisement costs and profit margin for the manufacturers,dealers,distributors etc.

BENEFIT OF DECIDING MRP  

     The main objective of the putting maximum retail price on the product is to ensure that shopkeepers will not charge more than the price printed on the product. It is good for customers and they will not be overcharged or cheated by the shopkeepers. Companies fix maximum retail price so that they can easily compete in the industry and earn profit to run their business.

DISADVANTAGE OF MRP

1.  To decide the maximum retail price company has the sole authority to decide MRP. Government has a negligible role in deciding the price of any product so there may be a chance that the manufacturers may decide unjust amount as the MRP of the product.

2.   The price may be unfair in certain states for example MRP includes all the charges like transportation,freight etc but the states which are near to the company where transportation charge is negligible and price may be less but customers have to pay maximum retail price so the advantage which is to be pass on all the players of the business,but it did not happen,profit goes to manufacturers and retail shopkeepers.

3.    This will impact the purchasing power of customers if the price is fixed by manufacturer are so high. It will ultimately impact a lot of retailers which are working on a small scale and they can loose their customers faith and base because such things are beyond their control.
   
     

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FULL FORM OF NSCCL

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