Manufacturer's Suggested Retail Price - MSRP

AAA

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.



INVESTOPEDIA EXPLAINS '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."

RELATED TERMS
  1. Wholesale Price Index - WPI

    An index that measures and tracks the changes in price of goods ...
  2. Personal Consumption Expenditures ...

    A measure of price changes in consumer goods and services. Personal ...
  3. Consumer Price Index - CPI

    A measure that examines the weighted average of prices of a basket ...
  4. Retail Prices Index - RPI

    One of the two main measures of consumer inflation produced by ...
  5. Producer Price Index - PPI

    A family of indexes that measures the average change in selling ...
  6. Inflation

    The rate at which the general level of prices for goods and services ...
Related Articles
  1. Budgeting

    12 Car Insurance Cost-Cutters

    If car costs are dragging you down, find out how to free yourself from some of the extra weight.
  2. Personal Finance

    Top 10 Ways To Get Top Dollar For Your Car

    Find out what steps you can take to reduce the depreciation of your vehicle.
  3. Options & Futures

    Beginner's Guide To Auto Insurance

    Find the perfect policy that suits both your coverage and budgetary needs.
  4. Options & Futures

    The Consumer Price Index: A Friend To Investors

    As a measure of inflation, this index can help you make key financial decisions.
  5. Options & Futures

    Top Tips For Cheaper, Better Car Insurance

    Accident, theft, vandalism - make sure your coverage will protect you when you need it most.
  6. Options & Futures

    Your Car: Fixer-Upper Or Scrap Metal?

    Sometimes buying a new car can be cheaper than shelling out for repairs.
  7. Insurance

    The True Cost Of Owning A Car

    Driving is often the most convenient way to get around, but it'll cost you.
  8. Budgeting

    The Momentum, And Methods, Behind Walmart's Model

    Walmart's success stems from low costs, which are possible through specific supply and distribution strategies, and are passed to consumers as low prices.
  9. Investing Basics

    What is the difference between a quarter and a year in finance?

    Examine the difference between a fiscal quarter and a fiscal year. Learn why investors examine both quarterly and annual growth rates.
  10. Economics

    ShopRite: Supermarket Model for Modern Shoppers?

    ShopRite is a supermarket model that stands out amid the everyday, widespread, corporate-controlled supermarket chains. But does it meet customers' needs?

You May Also Like

Hot Definitions
  1. Multiplier Effect

    The expansion of a country's money supply that results from banks being able to lend. The size of the multiplier effect depends ...
  2. Command Economy

    A system where the government, rather than the free market, determines what goods should be produced, how much should be ...
  3. Prospectus

    A formal legal document, which is required by and filed with the Securities and Exchange Commission, that provides details ...
  4. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  5. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  6. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
Trading Center