MOP stands for Market Operating Price while SRP is the acronym for Suggested Retail Price. Both these terms essentially denote pricing benchmark or guideline set forth by a brand for retail price of its products.
MRP or Maximum Retail Price is a well known term in India which is denotes the maximum price that a retailer can charge for a particular product including taxes. This is mentioned by a brand for each of its products and is driven by Government Regulations. MOP/ SRP on the other hand is not driven by Government Regulations by rather by the brand itself keeping in perspective the impact that price has on the brand.
While lower prices have a positive impact on sales volume, it may have a adverse impact on:
- Brand image; and
- Channel hygiene.
It is keeping these two aspects in mind that Brands set guidelines or thresholds for the retail selling price, essentially directing retailers not to sell below a particular price. Setting such benchmarks enables brands to ensure minimum variability of price which in turn provides a level playing field for all channel players.
To ensure that the guidelines set are adhered to, brands conduct periodic assessments which are called Price Check or MOP or SRP audits.