Suggested retail price

The suggested retail price ( SRP or RRP = Recommended retail price) is the price, which is the trade by the manufacturer, importer or wholesaler recommended resale price to the customer. Since (or: unless ) recommended user company (eg manufacturers as sellers, wholesalers and / or retailers and resellers ) operate at different economic levels, also of vertical price ( XLPE ) is spoken.

There are two different forms of vPE: Consumer price recommendation and discount price recommendation or trade price is offered. Distinguishing criterion is the relevant target group. Consumer price recommendations given to consumers immediately known, such as packaging or label imprint, by quotation of media advertising or in catalogs with a significant addition of the non-binding nature of the award. Dealer price recommendations are resale prices that are on resellers recommended in trade and service industries, but are not directly communicated to the end user (eg gross price lists, dealer catalogs). The consumer price recommendations are subject to abusive practices by the Federal Cartel Office (the problem of astronomical prices and the uncertainty suggested retail prices) ..

With his own quotation of retailers can undercut the consumer price recommendation at any time, so as to provide its price activity in competition to prove to perform special offer promotions or to accelerate the turnover rate in an article vPE or his stock clearance. If recommended prices of several or all competing dealers - by applying pressure or for whatever reason - respected, there is a risk that an unauthorized quasi- price cartel is formed. Unlike vPE the resale price maintenance grants from competitive perspective, no systematic and flexible individual calculation. Here, the dealer has a contractual obligation to comply with the bound final selling price.

Recommended retail prices in Germany there since January 1, 1974 since the fixed -price of branded products was lifted. With the use of the term retail price high care is taken to ( eg in the form of warnings ) to avoid legal trouble in advertising. In particular, in advertising any abbreviations of the term will be used to avoid misunderstandings.

USA

The MSRP ( manufacturer 's suggested retail price ) is the American counterpart to the retail price in the German-speaking countries, but excluding taxes and other charges, so that the final price for the customer depends on the tax rates of the individual states.