Suggested retail price

Suggested retail price is the selling price a manufacturer or supplier recommends for a product. Also called recommended retail price or RRP, it is a recommendation; the retailer's actual price may differ.

The recommendation can provide a common reference when positioning a product or calculating a proposed retailer margin. It is not evidence that the product normally sells at that price, nor that every seller follows it. A buyer should compare actual market prices and its own costs before treating the recommendation as achievable revenue.

For example, a supplier may recommend £40 retail for an item bought at £20. That suggests room for markup, but delivery, discounts and other selling costs still affect the result. The suggested price is also different from a markdown, which changes the retailer's actual selling price.