what is the manufacturer s suggested retail price msrp 
the manufacturer s suggested retail price msrp is the price that a product s manufacturer recommends it be sold for at the point of sale any retail product can have an msrp but the term is frequently used with automobiles an msrp is sometimes informally known as the sticker price the msrp is also referred to as the list price by some retailers other higher priced goods such as appliances and electronics may have an msrp as well the msrp is designed to keep prices at the same level from store to store however retailers are not required to use this price and consumers do not always pay the msrp when they make purchases items may be sold for a lower price so a company can reasonably move inventory off shelves especially in a sluggish economy investopedia sydney saporitounderstanding the manufacturer s suggested retail price msrp the manufacturer s suggested retail price is sometimes referred to as the recommended retail price rrp sticker price list price or suggested retail price of products this was developed to help standardize the price of goods throughout the various locations of a company s stores some retailers sell products at or just below the msrp they may set the price lower if the product is on sale or has been moved to clearance they may also reduce prices if they re trying to reduce their inventories or they re trying to attract more consumers conversely stores may set prices higher than the msrp if a product is in high demand and is likely to sell quickly the automotive industry frequently uses msrp to set the prices of new vehicles legally car dealerships must display the price on a sticker on the car s windshield or on a spec sheet buyers can use this price as a point to start negotiations before arriving at a fair price for the vehicle 1car dealers pay manufacturers an invoice price that is at or just below the msrp and knowing this price can help consumers better negotiate with a salesperson 