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. An MSRP is often used as a starting point to standardize a product’s cost across 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 price points.
On occasion, a retail store might sell a product for a lower price than the SRP, but typically this only happens if they’re promoting a sale price or discontinuing a certain SKU.