Control and monitoring of RRPs / MRPs

Basic concepts and benefits of monitoring and controlling market prices by manufacturers and vendors

The recommended market price is the value of the product set by its manufacturer. It is about the maximum reasonable value of the product, which takes into account:

  • The behavior of the market in the thematic segment of goods.
  • Quality indicators of a particular item from the price list.
  • The competitiveness of the product in comparison with products of an identical format of other companies (analogs).

Цена на товар

In most cases, the RRP is prescribed in the contract between the supplier and the retailer and is mandatory!

The RRP is lowered artificially by the seller - the market suffers - the producer suffers losses - penalties are imposed on the seller (What kind of penalties - to be decided privately).

Software to monitor and control RRPs/MRPs - implementation objectives

The key objective of the software under consideration is to identify dumping on the Internet - resources that engage in dishonest game and deliberately underestimate the cost to increase the number of sales.

Установка цен на товары

The relevance of launching a system of controlling RRP for your niche is confirmed by the following facts:

  1. Sales growth. A constant increase in the audience of your customers is determined only secondarily by the price! Much more important is the overall stability of the market, as well as the service you provide.
  2. Reducing dumping. Timely localization and elimination of irregularities will create a favorable selling microclimate, and will attract a new distributor or customer.
  3. Increasing margins. Strict adherence to RRPs/MRPs and consistently high margins allows you to attract new retailers and constantly expand your market.

As a result, any partner can sell as successfully as possible in any volume! This is a recipe for stable profits for every distributor regardless of market fluctuations.

Important: The retailer* has the right to lower the RRP on their store pages, justifying the price reduction with a "Promotional MAP (PMAP) policy "**.

Control and monitoring of RRP/MRP is a very topical issue for the retailer as well as for the producer

Why is it beneficial for the manufacturing companies to control the RRP

  1. Diversification of the sales market. The dependence from big market players, who dictate their own terms, is decreasing.
  2. The software will allow to control Universal Price policy (UPP)*** with respect to all participants of market trade.
  3. It will be possible to maintain market stability, ensure maximum profitability and demand for products for a long period of time!

Advantages of using the system of control and monitoring of RRP/MRPs for ordinary sellers (distributors):

  1. There is no price competition. This will make it much easier for the seller to enter the market. This is explained by the fact that large suppliers are able to offer a lower price to their distributor due to the high margins of the products.
  2. The level of sales has consistently high figures. With the use of "Helecos" software, dumping on the sales pages of your competitors can be detected in time.
  3. Fast and complete information about promotional offers and special conditions on the competitors' websites.
  4.  24/7 access. Unlike your office employee, Helecos can control your MRPs and RRPs 24 hours a day, no matter where you are.
Мониторинг цен

The economic benefits of using the Helecos control system for both the manufacturer and the retailer:

  • Reduction in the number of employees. There is no need to have a special employee to monitor competitors. This task will now be done automatically and take only minutes. Not only will you be able to free up your workplace and protect yourself from payroll, but you will also save on taxes.
  • Actuality of the information. Today's Internet market is characterized by super high activity and the situation with products prices can change every minute! Helecos allows you to get up-to-date information on prices when you need it. The whole process takes minutes and is guaranteed to be as accurate as possible (no human factor).
  • Usability. You receive only the information you need, without fakes and unnecessary garbage! Moreover, all the results are offered in a structured form, which greatly facilitates their further analysis.

Leverage against dumping - what are the options?

  1.  Apply the "Unilateral Minimum Resale Price (UMRP) policy "****. It is unilateral and applies to the specific distributor who violated the recommendations of the RMRP/MRP. Violation of UMRP means possible denial of service (shipment of products) if there is systematic dumping by the seller!
  2. Personal increase in the initial price of goods. The vendor may increase the purchase price by the amount of the discount provided by the vendor.
  3. Denial of shipment of marketable goods. In case of systematic dumping the supplier may continue to cooperate with the seller, but limit it in the most marginal and saleable items.
Мониторинг нарушений РРЦ

In addition, the manufacturer can not only refuse/restrict the distributor in the supply, but also make a complete ban on the use of its trademark for the sale of goods.

With the use of control and monitoring system of RRPs/MRPs it will be possible to detect and suppress dumping in time, ensuring compliance with uniform pricing conditions for all distributors, in which price is not the main factor in making a purchasing decision.

Контроль нарушений МРЦ

*Retailer is an entity responsible for the sale of products to the end consumer. It is the middle link between the supplier (manufacturer) and the customer.

**Promotional MAP (PMAP) policy - the policy of MRP (minimum retail prices), which is adopted as part of marketing promotions offered directly by the manufacturer. It is important that PMAP restricts only the reduction of the price below a certain level. The sale itself can be carried out by the seller at any cost "above". The same pricing principle applies in the case of RRPs/MRCs.

*** Universal pricing policy (UPP) - universal pricing policy for all market participants. UPP stipulates setting the unified retail price for all the representatives of the market grid in the segment in question. Offline markets and E-commepce are also subject to this policy.

**** Unilateral Minimum Resale Price (UMRP) policy - also commonly known as "Colgate" policy. Any contract between a seller and a manufacturer is subject to this policy. Under the terms of the UMRP, the manufacturer has the right to unilaterally withdraw completely from the deal with the retailer.

Нарушение РРЦ производителя


Price control

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