What Does MSRP Mean?

Discover why the prices recommended by producers and brands

- 4 Minutes read

The meaning of MRSP is the manufacturer’s suggested retail price, in other words, the price that producers and brands recommend to merchants and stores. It is a price that takes into account the process and costs of production. The final selling price may change as it is influenced by other factors such as logistics or taxes. This term is also known as list price or sales price.

The invoice price is the price paid by traders to brands or distributors. It can change depending on factors such as the bargaining power of the retailer, whether the product is purchased in batches, the vendor/dealer ratio.

Controlling the recommended retail price

Retailers are always looking for the best price to meet the high demand for consumer goods. The solution is usually the same: lower the selling price. Although this may translate into a greater reach for your brand, the general perception of users about your product will most likely be affected. This conflict can quickly turn into a price war in which the image of your brand will be the most affected.

msrp meaning

If you have a retail brand, it is very difficult, if not impossible, to control the prices of your products in all e-commerce stores. However, you have access to a powerful tool at the click of a button that will solve this problem efficiently and automatically. We are talking about product monitoring software for brands.

With this tool, you can see at what prices the shops are selling products of your brand, and you can also identify which retailers have a lower price for their items than the one you recommend, or even the agreed minimum, also known as MAP (Minimum Advertising Price).

Observing the evolution of the prices of your products is the starting point for strengthening the perception of users about your brand, and improving the sales of your products. A price that is too low can scare off many users, relating the low price to the value of the product, which affects the brand. On the other hand, if you cannot justify a high selling price for your brand’ items, the demand for them will soon disappear.


msrp meaning

With the price monitoring tool you will be able to be informed about the situation of your products, identify the sales prices and, if necessary, talk to the retailers about the distribution of your catalog in their stores. Making a price recommendation to the retailers should be the solution, but as we have explained before, competition for the best price leads stores to not respect that suggested minimum.

The software has a very interesting functionality for brands, in which it shows you, within the retailers’ catalogues, the percentage your brand occupies of the total inventory of the stores. This information will give you a key advantage when negotiating retail prices and setting a public sales price to sell.