What does MSRP stand for in merchandising?

MSRP stands for Manufacturer's Suggested Retail Price. This term refers to the price that a manufacturer recommends retailers use when selling a product to consumers. The MSRP serves as a guideline for pricing, helping to ensure consistency across different retail environments and locations.

Setting an MSRP allows manufacturers to standardize the perceived value of their products, which can influence consumer purchasing decisions. Retailers may choose to sell products at the MSRP, above it, or below it based on their pricing strategy, market conditions, and inventory levels. However, the MSRP is important as it indicates the expected value of the product in the marketplace, making it a crucial concept in merchandising and inventory management.