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Total Price Reduction (TPR)
Definition
A temporary price discount offered by a retailer or manufacturer that reduces the shelf price of a product for a defined period, typically funded in part by the manufacturer to drive short-term sales lift and volume.
How It's Calculated
TPR ($) = Regular Shelf Price − Promotional Price
TPR (%) = (TPR ÷ Regular Shelf Price) × 100
Example
A yogurt brand normally sells for $1.50 per unit but is promoted at $1.00 during a two-week promotion. The TPR is $0.50, or 33%, helping to increase unit sales and encourage trial.
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