MSRP (Manufacturer’s Suggested Retail Price)
Definition
MSRP stands for Manufacturer’s Suggested Retail Price.
It is the price recommended by the manufacturer for selling a product in retail.
Good or Bad?
Good, when used to show value and help customers compare prices.
Bad, if abused to mislead customers into thinking they’re getting a bigger discount than they are.
Why does it matter?
Displaying MSRP helps create a perception of savings when a product is sold below the suggested price.
It also maintains price consistency across resellers and builds trust with customers.
Common Mistakes
- Displaying fake or inflated MSRPs
- Forgetting to update MSRP after price changes
- Using MSRP on products where it’s not commonly expected
- Not showing the current sale price clearly
How to Improve It?
- Only display MSRP when there’s a clear benefit to the customer
- Use a plugin to automate MSRP fields across products
- Combine MSRP display with honest discount pricing
- Make sure the actual price is always prominent and easy to read
Recommended Plugin
- MSRP (RRP) Pricing for WooCommerce
Let customers see the manufacturer’s price alongside your store’s price
Encourages purchases by highlighting perceived savings without changing your actual pricing strategy
Real-World Example
A tech store lists a smartwatch with an MSRP of $299, but sells it for $249.
Customers feel like they’re getting a deal without applying an actual sale discount.
Related Terms
- Sale Price
- Product Pricing
- Psychological Pricing
- Pricing Display
- Suggested Retail Price
FAQs
Is showing MSRP legal?
Yes, as long as the MSRP is accurate and not misleading.
Do I need to show MSRP for every product?
No, only when it adds value or context for the customer.
Can MSRP be different in different countries?
Yes, manufacturers often provide country-specific MSRPs based on regional market differences.
