As a general guideline, you can calculate the Recommended Retail Price (RRP) by multiplying the wholesale price excluding VAT by 2.4.
For example:
If a product has a wholesale price of £1.25 excluding VAT:
£1.25 × 2.4 = £3.00
The exact retail price you charge is your choice.
The retail price you choose may also depend on your market, business costs and competition.
The 2.4 multiplier is a guideline
The recommended calculation is:
Wholesale price excluding VAT × 2.4
Your final retail price may depend on factors such as:
- Your target market
- Your business overheads
- Competitor pricing
- Your required profit margin
FAQs
What does RRP mean?
RRP means Recommended Retail Price.
It is a suggested price to consider when deciding how much to charge your customers.
How do I calculate the RRP?
As a general guideline, multiply the wholesale price excluding VAT by 2.4.
Do I include VAT when calculating the RRP?
Use the wholesale price excluding VAT as the starting point for the 2.4 calculation.
Do I have to sell products at the RRP?
No. The RRP is a recommendation only. You can choose your own retail selling price.
Does the RRP change if I receive a quantity discount?
No. The recommended RRP stays the same if you receive a quantity discount.
Does a quantity discount improve my margin?
A lower wholesale buying price can increase the difference between your cost and your selling price.
The recommended RRP itself does not change.
Where can I see the wholesale price?
Sign in to your Something Different Wholesale account to view product prices.
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