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pricing

MSRP (Manufacturer's Suggested Retail Price)

MSRP is the price a manufacturer recommends a retailer charge for a product. Unlike MAP, it is non-binding and a retailer may sell above or below it.

MSRP (also called the "list price" or "sticker price") is a guideline, not a legal floor. Retailers are free to price above or below MSRP in most jurisdictions. It is most commonly used in the automotive, electronics, and consumer goods industries.

Brands use MSRP to create a reference point that makes discounts more compelling ("50% off MSRP"). However, if too many sellers consistently price far below MSRP, it can erode the brand's perceived value.

In contrast to MAP, MSRP violations are not legally enforceable. If you need binding pricing protection, a formal MAP policy is required.

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Alternatives Overview

Related Terms

MAP Enforcement

MAP (Minimum Advertised Price) enforcement is the process by which a brand monitors its authorized and unauthorized sellers to ensure no one advertises a product below a pre-agreed minimum price.

Dynamic Pricing

Dynamic pricing is an algorithmic pricing strategy where a product's price is continuously adjusted in real time based on market conditions, competitor prices, demand signals, and inventory levels.

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