Guides / MRP vs sale price: where your discount really comes from

MRP vs sale price: where your discount really comes from

Two stores run the same "40% off" code on the same product. One keeps ₹300 more per order. The only difference is which price the percentage is taken from.

The example

	Normal Shopify code	With MRP Discount
MRP (compare-at price)	₹2,499	₹2,499
Sale price	₹1,999	₹1,999
40% is taken from	the sale price	the MRP
Customer pays	₹1,199	₹1,499
Real discount off MRP	52%	40%

These are example prices. The gap on your store depends on your own MRP and sale price.

Why it matters

• Margin. The extra discount comes straight out of each order.
• Ad returns. Return on ad spend is revenue divided by ad cost. If each order keeps more revenue for the same ad cost, the return is higher.
• Trust. The number in your ad is the number the customer gets off the MRP on the label.

What to do

If your products show both an MRP and a sale price, use a code that reads the MRP. Here are the steps.