What Is RRP? How to Calculate It as a Supplier

As a supplier, it’s important to know how to calculate RRP. Here’s a quick guide on RRP and how you can calculate it for your products.

I remember when I first started my business, I had no idea what it was or how to calculate it. Thankfully, I quickly learned that calculating RRP is actually quite simple once you know the formula. In this blog post, I’m going to share with you everything you need to know about RRP so that you can start calculating it for your own products

What is it?

The Recommended Retail Price of a product. It is the price that retailers are advised to sell the product for and is usually printed on the product packaging.

RRP can be used as a guide to help shoppers compare prices and find the best deals.

What is the Recommended Retail Price?

A product’s RRP, or recommended retail price, is the list price that the wholesaler recommends the retailer charge for a particular product. This helps to standardize prices amongst different locations.

An RRP may also be referred to as a listing price or MSRP (suggested retail price).

Do You Have to Sell Items for RRP?

In the United Kingdom, the RRP (recommended retail pricing) is just that — a suggestion.

As a retailer, you have the freedom to set your own prices for products, but there are some legal requirements you must take into account. If you’re ever unsure, it’s best to seek professional legal advice.

The recommended retail pricing is the price that retailers suggest you should pay for a product.

Other names for RRP include: list price, manufacturer’s suggested retail price (MSRP), or suggested retail price (SRP).

RRP is generally the most common term in the UK, whereas MSRP is more commonly used in the US.

However, as a retailer, you are not required to sell items at RRP and can set your own prices.

How to Calculate RRP as a Supplier

If you’re the supplier, you probably know how much you need your retailer to charge their customers in order to make money. But do you know the best way to determine the retail price your retail partners need to set?

The margin is the difference between the cost of creating your goods and the final cost the customer pays. This needs to cover your profit, the profit of your retailers, and any costs associated with distributors or marketplace commission.

Adequate margins for retailers depend on many factors, such as their own setup (brick and mortar store or e-commerce?) and marketing costs.

But there are some general trends that apply across the board.

Let’s assume for a minute that distributors and marketplaces aren’t charging you anything for their services. Here’s what we recommend leaving for retail in terms of profit margin.

If you have a cosmetic product that costs $10, a retailer will typically pay no more than $6.50 for it. Within that $6.40, you’ll need to cover your own expenses and profits, as well as any shipping costs.


Calculating RRP is important for suppliers so that they can price their products correctly. By following the simple formula, any supplier can quickly calculate the RRP of their products. So now you know RRP and how to calculate it – go out there and start pricing your products correctly!

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