Retail price
The suggested retail price ( SRP ), also non-binding retail price ( RRP ) or recommended retail price is the price , of the trade from the manufacturer , importer or wholesaler as resale price to the customer is recommended. On the sales side, it should serve as a price guide and for retailers as a calculation aid. Since (or: if) companies using price recommendations (e.g. manufacturers as sellers, wholesalers and / or retailers as resellers ) are active on different sales channels , we also speak of vertical price recommendation ( vPE ).
There are two different forms of vPE: consumer price recommendation and retailer's recommendation or trading price recommendation . The distinguishing criterion is the respective target group. Consumer price recommendations are made known to consumers directly, for example by printing on packaging or labels, by quoting prices in media advertising or in catalogs with a clear addition of the non-binding price. Dealer price recommendations are resale prices that are recommended to resellers in the trade and service industry, but are not communicated directly to end consumers (e.g. gross price lists, dealer catalogs). The consumer price recommendations in Germany are subject to abuse control by the Federal Cartel Office (problem of moon prices and the indeterminacy of recommended sales prices).
The retailer can undercut the consumer price recommendation at any time with his own price indication in order to prove his price activity in the competition, to carry out special offers or to accelerate the turnover rate for an item with vPE or to clear the warehouse. If recommended prices are adhered to by several or all competing dealers - through pressure or for whatever reason - there is a risk that an unauthorized quasi-price cartel will arise. In contrast to the vPE, from a competitive systematic point of view, vertical price maintenance does not guarantee flexible and individual calculation . Here the dealer has contractually agreed to adhere to the fixed retail price.
Recommended retail prices have existed in Germany since January 1, 1974, when the fixed price fixing for branded articles was lifted. When using the term recommended retail price , great care is taken in advertising in order to avoid legal trouble (e.g. in the form of warnings ). In particular, no abbreviations of the term are used in advertising in order to avoid misunderstandings.
United States
The MSRP (manufacturer's suggested retail price) is the American equivalent of the recommended retail price in German-speaking countries, but without taxes and other fees, so that the final price for the customer depends on the respective tax rates in the individual countries.
Individual evidence
- ↑ Preißner, Markus: The manufacturer's 'recommended retail price' from the retailer's point of view: -discussed using the example of the glass, porcelain, cutlery, household items and gift items (GPK) industry . Cologne 2007, ISBN 978-3-935546-02-7 , pp. 12 .
- ↑ See Hans-Otto Schenk: vertical price recommendation. In: Franz Böcker (Ed.): Price theory and price behavior. Vahlen, Munich 1982, ISBN 3-8006-0946-0 , pp. 263-278.