MRP vs Selling Price on Tags Explained - Your Quick Guide

What Is MRP?

MRP, or maximum retail price, is the highest price a product can be sold for to a customer. It is usually printed on the pack by the manufacturer or brand and includes all taxes. A shop cannot charge more than the MRP, but it is free to charge less.

What Is the Selling Price?

The selling price is what the customer actually pays at your shop. It can be the same as the MRP, or lower when you run an offer, clear old stock or match a competitor. Many shops sell everyday items slightly below MRP to attract regular customers, and offer bigger discounts during festival sales.

How to Show Both on a Tag

When the selling price is lower, show it as the main price in large text and put the MRP next to it, smaller and struck through. This tells customers immediately how much they save. When there is no discount, print only the MRP. Adding (Incl. of all taxes) under the price confirms that no extra GST will be added at billing.

How the Discount Is Worked Out

• The Formula :

  Discount % = (MRP - selling price) ÷ MRP × 100.

• An Example :

  MRP ₹999 and selling price ₹799 gives a discount of 20%.

• Rounding :

  The tool rounds the result to a whole number, so tags show clean values such as 20% OFF.

• No Negative Discounts :

  If the selling price is higher than the MRP, the tool warns you and shows no discount.

What Customers Expect

Customers expect the price on the tag to match the price at billing, and they expect the discount to be real. If a tag shows a big discount but the MRP looks inflated, trust drops quickly. Keeping your MRPs accurate, showing the selling price clearly and calculating discounts correctly is the best way to build a loyal customer base.

Common Pricing Mistakes

• Charging Above MRP :

  Selling above the printed MRP is not allowed and upsets customers.

• Unclear Tags :

  Two prices without a struck-through MRP leave customers unsure what they will pay.

• Old Discounts :

  Forgetting to remove sale tags after an offer ends causes disputes at the counter.

• Wrong Maths :

  Hand-calculated discounts are easy to get wrong - let the tool work them out.

MRP and Selling Price Explained with Examples

Here is how the two prices work in practice, explained with simple examples. A shirt with an MRP of ₹1,299 sold at ₹999 shows the offer price of ₹999 in large text, MRP ₹1,299 struck through and 23% OFF. A packet of biscuits with an MRP of ₹40 sold at the full price shows only MRP ₹40 and (Incl. of all taxes). A phone cover with an MRP of ₹499 sold at ₹449 shows ₹449, the struck MRP and 10% OFF. In every case, the customer can see at a glance what they pay and how much they save.

Why Accurate MRPs Matter

Customers use the MRP as a reference point. If the MRP on your tag does not match the MRP printed on the pack, customers may think the discount is not genuine. Always copy the MRP exactly from the product or your supplier's price list, and update your tags whenever the manufacturer changes it. Clear, correct prices protect your reputation and keep customers coming back.

Conclusion

MRP is the upper limit; the selling price is what customers pay. Show the selling price large, strike through the MRP and let the % OFF speak for itself. With Quick Cropper you can print clear MRP stickers and offer tags for every product, with the discount calculated for you.