Definition: Manufacturer Suggested Retail Price

What is manufacturer suggested retail price?

Manufacturer suggested retail price (MSRP) is a term commonly used in the retail industry to refer to the price that manufacturers suggest their products should be sold at in stores. It is also known as the suggested retail price (SRP) or list price.

MSRP is typically used as a reference point for retailers to set their own pricing for the products they carry. The manufacturer sets the MSRP based on factors such as production costs, market demand, and competition. The MSRP is usually higher than the actual cost of production, as it takes into account factors such as marketing and advertising expenses, research and development costs, and profit margins.

Retailers may choose to sell products at the MSRP, below it, or above it, depending on their own business strategies, market conditions, and customer demand. In some cases, manufacturers may require retailers to sell their products at or above the MSRP to maintain consistent pricing across different retail channels.