Key takeaways
- MRP and DP are money. PV and BV are points.
- Your retail margin is MRP minus DP, not the points.
- Commission depends on the plan, which converts points into pay. Read the plan.
What do MRP, DP, PV and BV mean in direct selling?
In direct selling, MRP is the maximum retail price a customer pays, DP is the distributor price a seller pays the company, and PV or BV are points assigned to each product. The gap between MRP and DP is the seller's retail margin. Points are used to calculate commissions and ranks.
The four numbers, one by one
| Term | Stands for | Is it money? | What it does |
|---|---|---|---|
| MRP | Maximum Retail Price | Yes | The price the customer pays, printed on the pack |
| DP | Distributor Price | Yes | What you pay the company for the product |
| PV | Point Value | No: points | Counts towards your rank and commission |
| BV | Business Volume | No: points | Often the sales volume used for team bonuses |
Companies use these words differently. In some, PV and BV are the same; in others, they measure different things (for example, after-tax value versus points for rank). Check the company's own definitions.
A worked example
Invented numbers for three products, to show how the four terms relate:
| Product | MRP | DP | Retail margin | PV |
|---|---|---|---|---|
| Daily supplement | ₹1,000 | ₹750 | ₹250 (25%) | 25 |
| Face cream | ₹800 | ₹640 | ₹160 (20%) | 16 |
| Dishwash concentrate | ₹450 | ₹360 | ₹90 (20%) | 9 |
Your margin on each is a plain subtraction. The PV doesn't change what you keep on a retail sale. It counts towards a separate commission calculation.
Same product, two different numbers
The supplement from the table: ₹250 retail margin, and 25 points that are not rupees.
What to ask before you rely on the numbers
- "Is the DP before or after tax?" It changes your real margin.
- "Does the margin apply to every product?" Some items carry less.
- "How does the plan turn PV into commission, and what do I have to do to qualify?" Points explained →
- "How often do prices and PV values change?" Frequent changes complicate planning.
To judge whether a margin is worth the effort, use the break-even maths. For how points become pay, read how compensation plans work.
Frequently asked questions
What does MRP stand for?
MRP is Maximum Retail Price, the highest price at which a product can be sold to a consumer in India. It's printed on the pack and includes taxes.
Is PV the same as money?
No. PV (point value) or BV (business volume) is a points score the company assigns to each product to calculate commissions and ranks. It isn't rupees or dollars, and the conversion into commission depends on the compensation plan.
How do I find my actual margin?
Subtract the distributor price from the MRP, then divide by the MRP. Check whether the distributor price is before or after tax and whether any other deductions apply.
Sources
- Department of Consumer Affairs, India: Consumer Protection (Direct Selling) Rules, 2021. consumeraffairs.nic.in
- U.S. FTC Consumer Advice: Multi-Level Marketing Businesses and Pyramid Schemes. consumer.ftc.gov