MSRP (Manufacturer's Suggested Retail Price)

What is MSRP?
MSRP (Manufacturer's Suggested Retail Price), also called list price or RRP (Recommended Retail Price), is the price a manufacturer recommends retailers charge for its product. It is a recommendation, not a binding price — retailers in most markets are legally free to sell above or below it.

MSRP serves as a common reference point across a distribution network: it anchors consumer price perception, defines the "discount" shown on sale tags, and is the baseline from which reseller margins are negotiated. Brands monitor street prices against MSRP to understand how quickly their products erode in price after launch and which channels discount most aggressively.

MSRP is often confused with MAP (Minimum Advertised Price): MSRP suggests a selling price, while MAP sets a floor on the price retailers may advertise — and only MAP is typically enforced through compliance programs.