Manufacturer’s Suggested Retail Price (MSRP)

Pricing & Promotion Metrics

Definition

The recommended retail price set by a manufacturer for a product, intended to guide retailers in pricing. MSRP serves as a reference point, but retailers may price products higher or lower based on strategy, competition, and promotions.

How It's Calculated

Example

A beverage brand sets an MSRP of $2.49 per unit, but retailers may temporarily price the product at $1.99 during promotions or adjust pricing based on local competition.

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