MSRP Definition
Manufacturer's Suggested Retail Price (MSRP) is the price a product's manufacturer recommends that retailers charge end customers. It is a reference point, not a binding rule. Retailers are generally free to price above or below it, though some manufacturer agreements and regional regulations impose constraints.
Is MSRP the same as RRP?
Effectively yes. RRP (Recommended Retail Price) is the same concept under a different name, more commonly used in the UK, Europe, and Australia. Both represent the manufacturer's stated expectation of what the product should sell for at retail. The terms are interchangeable in most commercial contexts.
Why do manufacturers set an MSRP?
Manufacturers use MSRP to protect brand positioning, give retailers a pricing baseline, and maintain perceived value across channels. A product sold at widely inconsistent prices across different retailers can undermine consumer trust and create channel conflict. MSRP provides a shared reference that keeps pricing reasonably aligned without requiring formal price-fixing, which is illegal in most jurisdictions.
Where does MSRP appear in product data?
MSRP is often stored as a product attribute alongside cost price, wholesale price, and sale price. In B2B commerce contexts, it frequently appears in product catalogs and order forms to help buyers understand the margin they can expect. In a PIM system, MSRP is typically stored at the SKU level and may be published selectively, shown to trade buyers but not necessarily surfaced on a consumer-facing storefront.
