What does RRP really mean?
I used to know the answer to this, when I was younger. It was simple, “Recommended Retail Price” or, the price at which the manufacturer recommends that the retailer sell the product, and the price at which most of that specific product sold for, unless they had a special sale.
But now, is it different?
I just read this explanation of sales prices against the RRP.
The supplier’s recommended retail price for the product, provided that this is a price at or above which at least 5% of transactions have occurred for that product within the previous 2 months.
So, if something normally sells for $20, but has an RRP of $99, that $99 figure can be used for advertising, as long as 5% of sales are done at that price, during the last 2 months.
That explains why almost everything can be bought at much less than RRP these days.
I buy Ice Cream sticks quite often, the RRP is $7 a pack. I haven’t paid over $3.50 per pack in 3 years.
I buy some breakfast cereal, it has an RRP of $8.50. I normally pay $4.25. I haven’t paid RRP for years.