Manufacturer Suggested Retail Price (MSRP)

The Manufacturer Suggested Retail Price (MSRP) is a term used to describe the suggested retail price for a product as determined by the manufacturer. This price is intended to serve as a guide for retailers to use when setting their own prices for the product.

MSRP can be a useful tool for both manufacturers and retailers. For manufacturers, it helps to ensure that their products are sold at a consistent price across different retail channels. This can help to maintain the perceived value of the product and prevent price undercutting by retailers. For retailers, MSRP can provide a benchmark to use when setting prices for products, which can help to increase profit margins.

However, retailers are not required to sell products at MSRP and often sell them for less. This becomes even more of an issue as, in their attempts to capture buyers’ business, sellers may undersell the MSRP for the sake of moving their inventory or capturing market share.

To prevent the price wars that may occur when Amazon third-party sellers try to undersell the MSRP, the manufacturer and seller may agree on a Minimum Advertised Price (MAP) as the lowest price to be charged by the sellers.

It is important to note that MSRP can vary from country to country and between retailers. Additionally, MSRP is not always accurate, and it’s important to research the product and compare prices from different retailers before making a purchase.