Maximum Retail Price

Every manufacturer or stockiest analyses the cost of a unit and determine the maximum retail price. The cost includes the cost of raw materials, carriages, taxes, commission and wages. The total of these costs is then added to a certain profit margin which the producers want to earn. Thus a maximum retail price is determined. In a market like Nepal where the general consumers are unaware of MRP, gets cheated. Same product of the same brand has different price labels tagged in different shopping malls which make the consumers more confused, and sometimes the price of certain products can go beyond the MRP. In developed countries the final consumers are obliged to compare between two brands regarding the maximum retail price whereas in our market people have to compare the maximum retail price of the same product of the same brand and made.

In underdeveloped countries new product is launched or imported and given to distributors or dealers to sell them in the market. Some of the products have a high gap between the maximum retail price and the dealer’s price and some have a very small gap. If the gap is very small then the consumers are benefited and vice versa. Dealer’s price is that price which is given to the distributors or the stockiest or dealers by the manufacturing companies. Here in Nepal most of the final consumers are always cheated because there are very less manufacturing companies and everything has to be imported. The importer gets the maximum out of it.