Manufacturer's Suggested Retail Price - MSRP

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DEFINITION of 'Manufacturer's Suggested Retail Price - MSRP'

The amount of money for which the company that produces a product recommends that it be sold in stores. MSRP does not necessarily correspond to the price retailers actually use or to the price customers are willing to pay. Retailers may need to set their prices below MSRP to move inventory, especially for items with low demand or in a sluggish economy.

BREAKING DOWN 'Manufacturer's Suggested Retail Price - MSRP'

One industry in which MSRP is frequently used is in car sales, where it must be displayed on a sticker on the car's windshield or on a spec sheet on one of the car's windows. The MSRP can help the customer determine a fair price to pay for the vehicle. The concept of MSRP exists in many industries, but outside of the auto industry it often has a different name, such as "list price."

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