Updated October 2026: since January 2026, Cocoguru has the same MRP in every region. The 25% cap on the retailer’s mark-up still applies.
An MRP looks like just a number printed on a pack, but it decides how much a retailer can charge you. Here is how we balance retailers, consumers and our brand when we set it.
Setting an MRP (maximum retail price) looks simple. Competitors fight their real battles over wholesale prices. The MRP only sets the upper limit: retailers can sell at any price below it. It is just a number printed on the pack, and tax is charged on the selling price, not the MRP, so it seems to matter little. But at Cocoguru we look past the obvious, at the consumer’s interest as well as the retailer’s. Retailers may set the price, but it is the consumer who pays. A brand must not leave retailers free to charge whatever they like; there must be a limit.
What retailers want
- Higher margins. Retailers want a good return for their effort.
- Room to set their own price. Their customers, volumes and costs differ, so they want room to choose a suitable margin.
- Room for discounts. They like to offer discounts to draw customers, without giving up their own margin.
- Room for commissions. Spice shops for tourists, in places such as Dharmasthala and Subramanya, often pay commission to the tour operators or drivers who bring customers. The margin must cover that and still leave a profit.
- Someone else to blame. When a customer complains about the price, a retailer would rather point to the MRP the maker printed.
There is nothing wrong with looking after retailers, as long as consumers are not exploited and the brand’s good name is kept.
What consumers want
- A low price. A lower MRP keeps the final price lower.
- A discount. Consumers like a discount on the MRP, though ideally they should look at the price they actually pay, not the size of the discount.
- A steady price. They expect much the same price wherever, and from whoever, they buy.
What makes it hard for a brand
- Changing costs. Raw material prices move, especially for a commodity like copra, so wholesale prices and MRPs change too. With stock spread along the supply chain, a change of MRP can cause confusion.
- Different markets. Markets differ in how much they use and in what it costs to run a shop, which affects the final price and margins.
- Keeping retailers on side. Retailers are how we reach consumers. If they are unhappy, they sell us only to customers who ask for us by name, and push other brands to everyone else.
How we set our MRP
A different MRP for each region. In coastal Karnataka, coconut oil is a cooking oil and families use a lot of it. Towns are smaller and close to our factory, so selling and delivery cost less, and buyers watch the price closely. So we keep a lower MRP there.
In the rest of Karnataka, coconut oil is used mainly for hair and skin, so each family uses less. Shops in big cities like Bengaluru cost more to run, and the oil travels further from our factory. So the MRP there is a little higher, and buyers are less sensitive to it.
A cap on the retailer’s mark-up. We are not just a manufacturer; we are a brand that cares about its consumers. We put their interest first, even if it means a tighter margin for retailers. So our MRP is never more than 25% above the wholesale price.
Read more: How we took control of our price