Dictionary/Recommended Retail Price (RRP)
Recommended Retail Price (RRP)
Recommended retail price, or RRP, is the price a brand suggests a retailer charges consumers. The retailer remains free to set its own price.
What it means
The recommended retail price, or RRP, is the consumer price a brand suggests for a product. It is also called MSRP, suggested retail price or list price. Wholesale prices are often expressed as a discount off RRP.
Recommended retail price and the law
In the EU the retailer sets its own resale price. A brand may recommend a price or set a maximum price. Setting or enforcing a minimum resale price is unlawful in the EU and the UK.
In practice that means a recommendation must stay a recommendation. Pressure, threats to cut supply, or discounts and marketing money tied to the partner's price can turn it into a fixed minimum, which competition authorities fine.
Why recommended retail price matters for lifestyle brands
An RRP gives retailers and consumers a reference point. It anchors your wholesale price list. It also makes campaigns visible: when a retailer shows a discount, it is usually measured against the RRP.
Seeing that a partner runs a campaign is useful for your own planning, such as offering stock before a featured product sells out.
Example
A homeware brand sets an RRP of €89 for a vase and sells it to retailers at 50% off RRP excluding VAT. One partner runs it at €69 in November. The brand uses that information to plan its own campaign calendar and to offer the partner a restock, and leaves the price to the partner.
