Browse Definitions:
Definition

manufacturer's suggested retail price (MSRP)

Contributor(s): Matthew Haughn

Manufacturer’s suggested retail price (MSRP) is the price that the maker of a product recommends for it in customer-facing retail stores.

A MSRP is commonly 2.5 to 3 times a wholesale price. Typically, retail establishments set their list price at or below the MSRP. In sales, the MSRP is often used to show the discount that may be possible because of the seller’s volume buys or manufacturer's promotions. A MRSP may also be inflated to make the offered retail price appear more attractive.

The extra expense added above a manufacturer's cost or the wholesale price is generally necessary in order to cover the various costs involved with producing the product and running a retail store. Such costs as property, staff wages, electricity, phone, internet and other costs would be impossible to meet without a profit margin. 

Occasionally products may sell above MSRP, especially when supply is justifiably low and consumer demand is high.

This was last updated in April 2016

Continue Reading About manufacturer's suggested retail price (MSRP)

Start the conversation

Send me notifications when other members comment.

By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

Please create a username to comment.

-ADS BY GOOGLE

File Extensions and File Formats

SearchCompliance

  • smart contract

    A smart contract, also known as a cryptocontract, is a computer program that directly controls the transfer of digital currencies...

  • risk map (risk heat map)

    A risk map, also known as a risk heat map, is a data visualization tool for communicating specific risks an organization faces. A...

  • internal audit (IA)

    An internal audit (IA) is an organizational initiative to monitor and analyze its own business operations in order to determine ...

SearchSecurity

SearchHealthIT

SearchDisasterRecovery

  • incident management plan (IMP)

    An incident management plan (IMP), sometimes called an incident response plan or emergency management plan, is a document that ...

  • crisis communication

    Crisis communication is a method of corresponding with people and organizations during a disruptive event to provide them with ...

  • Zerto

    Zerto is a storage software vendor that specializes in enterprise-class business continuity and disaster recovery in virtual and ...

SearchStorage

  • SSD write cycle

    An SSD write cycle is the process of programming data to a NAND flash memory chip in a solid-state storage device.

  • data storage

    Data storage is the collective methods and technologies that capture and retain digital information on electromagnetic, optical ...

  • hard disk

    A hard disk is part of a unit -- often called a disk drive, hard drive or hard disk drive -- that stores and provides relatively ...

Close