Recommended retail price

Okay, let's pretend you have a toy that you want to sell. You want people to buy the toy from you, but you also want to make sure you get enough money to cover the cost of making the toy and still make some extra money for yourself.

So, you come up with something called a "recommended retail price" or RRP, which is like a suggestion of how much people should pay for your toy. It helps people know how much they can expect to pay for the toy and helps you make sure you earn enough money to cover your costs.

When you set the RRP, you think about things like how much it cost to make the toy, plus any other expenses like packaging or shipping. You also consider things like how much other similar toys are being sold for in stores. This helps you decide what a fair price would be for your toy.

Once you decide on the RRP, you can tell stores and other sellers how much you recommend they sell your toy for. This helps keep things fair and consistent. If everyone sells the toy for the same price, then customers can compare prices at different stores and choose where to buy it from.

But here's the thing, even though you recommend a price, it doesn't mean that every store will sell your toy for that exact amount. Some stores might decide to sell it for a little less or a little more. They can do this because they might want to attract more customers by offering a lower price or because they have extra costs like rent that they need to cover.

So, the recommended retail price is just a suggestion for how much people should pay for your toy. It helps you as the seller make sure you earn enough money, and it helps customers know what they can expect to pay. But in the end, it's up to each store to decide how much they want to sell your toy for.