• The Manufacturer’s Suggested Retail Price (MSRP) is the fixed price recommended by the manufacturer of the product to retailers.
  • They are often used in the sale of cars, although most retail items are sold at the suggested retail price.
  • The MSRP is different from the invoiced price, the price the dealer or retailer pays the manufacturer.
  • Many retailers will sell below MSRP to reduce inventory, attract more consumers, or during a sluggish economy.
  • Conversely, some retailers will set prices above the manufacturer’s suggested retail price for high-demand items.