MSRP / RRP
Category: Pricing
Also searched as: MSRP / RRP
Definition (plain English)
Manufacturer Suggested Retail Price or Recommended Retail Price is the reference shelf or online price a brand suggests for retailers or distributors.
Why it matters commercially
MSRP/RRP sets the top-down pricing frame for wholesale price, distributor margin, promotions, channel conflict, and whether imported landed cost can support the market price.
Example
A supplier offered a $7.20 landed cost against a $9.99 RRP, leaving too little room for retailer margin and promotions, so the buyer pushed for a lower target buy price.
Common mistake
Treating MSRP as guaranteed selling price instead of checking competitor prices, channel discounts, retailer margin, VAT/sales tax display rules, and promotion depth.
Use this in CommerceKit
Landed Cost
Use tool →Target Buy Price Calculator
Use tool →Markup vs Margin
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