The manufacturer's list price becomes the reference, the own price is communicated as a percentage discount. RRP Minus is a retail standard — and shapes expectations more than some manufacturers like.
What it is
With RRP Minus Pricing (Recommended Retail Price Minus), the price is communicated as a discount on a manufacturer-set list price (RRP). The added value for the customer lies in the perceived saving against the list reference.
How it works in practice
- Consumer goods retail: "30 % off RRP" as standard communication.
- Online marketplaces: platforms such as Amazon display struck-through reference prices.
- Industrial distribution: wholesale conditions reflect tiered discounts on the manufacturer's list price.
What customers gain
- A clear saving figure as a decision signal.
- Comparability across multiple retailers.
- A negotiation basis in direct procurement.
What providers gain
- Stable list-price anchor even during intensive promotions.
- Differentiation via condition depth instead of list price level.
- Clear steering across channels and customer groups.
Where to be careful
- List-price inflation: RRPs are artificially raised to show higher discounts — legally risky (EU price-indication and Omnibus rules).
- Perception trap: full prices outside promotions look overpriced.
- Margin risk: those constantly on promotion permanently lift the price level out.
When does the method fit?
RRP Minus works for assortments with a clearly established RRP and multi-tier distribution. Prerequisites are disciplined list-price care and consistent promotion steering. In markets without stable RRP logic (custom B2B, project business), the model is structurally unsuitable.
Andreas Stauber
Founder & Managing Director, Resilient Value GmbH