The manufacturer's suggested retail price (MSRP) or recommended retail price (RRP) is the price that a product manufacturer suggests to the retailer of the product. The term is also called the list price or recommended retail price (RRP). An MSRP is often used as a starting point to standardize a product’s cost across different stores and multiple sales channels and gives resellers a better understanding of the valuation of an item. Recommended retail pricing is frequently inputted into local point of sale systems for easy recollection and storage of these recommended price points.
On occasion, a retail store might sell a product for a lower price than the suggested base price, but typically this only happens if they’re promoting a sale price or discontinuing a certain SKU.