MSRP vs Wholesale: Understanding the Key Differences

MSRP vs Wholesale! What do these terms really mean, and how do they affect your business?

If you’re running a store, whether online or physical, understanding the difference between these two pricing strategies is important for profits and customer relationships.

➡ In this article:

We’ll break down what MSRP (Manufacturer’s Suggested Retail Price) and Wholesale Pricing are, how they’re used, and the key differences between them.

You’ll also learn when to use each strategy and how to apply them to grow your business.

➡ Also:

If you’re a WooCommerce store owner, we’ll also show you a simple tool to help you manage MSRP and wholesale pricing with ease.

➡ By the end:

You’ll have the clarity to make smarter pricing decisions👌

What is MSRP?

MSRP stands for Manufacturer’s Suggested Retail Price, it’s the price that the manufacturer recommends a product should be sold for in stores.

Think of it as a guideline, not a rule.

• Why is MSRP Important?

The MSRP helps everyone, from manufacturers to retailers and customers, stay on the same page about what a product is worth.

➡ For example:

A phone company sets the MSRP of a new smartphone at $1,000. This tells stores, “Here’s the price we think you should sell it for.”

Retailers can then decide to sell the phone at the MSRP or offer discounts to attract more buyers.

• How Does MSRP Benefit Retail Stores?

1. Consistency Across Stores

MSRP ensures that most stores start with the same price.

If the same phone is listed at $1,000 in multiple stores, customers feel confident they’re getting a fair deal.

2. Easier Price Comparisons

Customers can quickly compare deals when the MSRP is visible.

If one store offers the phone for $950 instead of $1,000, the savings are clear, which encourages purchases.

3. Builds Product Value

Showing MSRP reminds customers of a product’s full value, even if they’re buying it at a discount, this helps create trust and reinforces the product’s worth.

👉 In short:

MSRP is like a roadmap for pricing.

What is Wholesale Pricing?

Wholesale pricing is the cost a retailer pays to buy products in bulk from a manufacturer or supplier.

It’s usually much lower than the price customers see in stores because it’s designed for businesses to buy large quantities and still make a profit when they resell the items.

• How Does Wholesale Pricing Work?

Let’s say you own a small clothing store.

You want to sell t-shirts, so you buy them from a supplier:

• • The supplier sells each t-shirt to you for $10 (wholesale price).
  • You then sell the t-shirts in your store for $20 (retail price).

The difference between the wholesale price and the retail price is your profit.

• Why is Wholesale Pricing Important for Businesses?

1. Helps Stores Make a Profit

Buying products at a lower cost means you can sell them at a higher price and keep the difference as profit.

2. Encourages Bulk Buying

Suppliers usually offer better deals for larger orders.

➡ For example:

If you order 100 t-shirts instead of 10, the wholesale price might drop to $8 per shirt, increasing your profit margin.

3. Supports Efficient Supply Chains

Wholesale pricing makes it easier for businesses to plan, stock up, and offer competitive prices to their customers.

You may be interested in:

WooCommerce Quantity Based Pricing: Do’s and Don’ts

Key Differences Between MSRP and Wholesale

MSRP and Wholesale Pricing are both important for businesses, but they serve very different purposes.

Here’s how they compare:

1. Pricing Structure

• MSRP:

The price that manufacturers recommend products should sell for in stores, it’s a guideline for retailers to follow.

➡ Example:

A smartphone might have an MSRP of $1,000, suggesting its value to customers.

• Wholesale Pricing:

The discounted price retailers pay when buying in bulk from suppliers.

➡ Example:

A retailer buys the same smartphone for $600 (wholesale price) and sells it at or near the MSRP to make a profit.

2. Target Audience and Use Cases

• MSRP:

Designed for customers, it shows them what the product is worth and helps them understand if they’re getting a good deal.

• Wholesale Pricing:

Designed for retailers and businesses, it’s all about helping them buy in bulk at a lower cost to resell at a profit.

3. Profit Margins

• MSRP:

Helps retailers communicate the product’s value and justify their selling price, the difference between the MSRP and the actual selling price often highlights customer savings.

• Wholesale Pricing:

Sets the foundation for profit, retailers use the difference between the wholesale price and the selling price to make money.

Quick Comparison Table

Aspect	MSRP	Wholesale Pricing
Purpose	Suggests retail price for customers	Discounts for retailers to resell
Target Audience	Shoppers	Businesses and retailers
Price Level	Higher, reflects full product value	Lower, designed for bulk purchases

 

• Why Knowing the Difference Matters

Understanding these differences helps you make smarter pricing decisions.

➡ For example:

If you’re selling products in bulk to other businesses, wholesale pricing is key.

But if you want to communicate value and build trust with customers, MSRP is essential.

When to Use MSRP vs Wholesale Pricing

Choosing between MSRP and Wholesale Pricing depends on the type of business you run and your goals.

Both strategies are important but are used in different situations.

• When to Use MSRP Pricing

1. For Retail Sales

If you’re selling directly to customers, MSRP pricing helps you show the value of your products.

➡ Example:

A WooCommerce store selling electronics can display MSRP: $500, Your Price: $400 to highlight savings and attract customers.

2. During Promotions or Discounts

MSRP is great for showcasing discounts during seasonal sales.

Customers see the original price and feel like they’re getting a deal.

• When to Use Wholesale Pricing

1. For Selling in Bulk

Wholesale pricing is ideal if you’re supplying products to other businesses or retailers.

2. To Attract Resellers

Businesses looking to stock their stores need competitive wholesale prices to make a profit.

Offering a fair wholesale price makes your products appealing to resellers.

3. For Streamlining Business-to-Business Sales

Wholesale pricing simplifies deals between manufacturers, suppliers, and retailers, ensuring everyone benefits from the transaction.

• Blending Both Strategies

Some businesses use both MSRP and wholesale pricing, depending on their audience.

A WooCommerce store might use MSRP for retail customers while offering wholesale pricing for bulk orders to businesses.

➡ Example:

A store sells individual coffee makers to retail customers at $100 MSRP, but offers wholesale buyers a price of $70 per unit for orders of 10 or more.

You may be interested in:

WooCommerce Let Customer Enter Price? Here’s How!

Effortless MSRP Management for WooCommerce Stores

If managing MSRP feels like a challenge or you’re struggling to show the right prices in your WooCommerce store, the “MSRP (RRP) Pricing for WooCommerce plugin” is here to help.

Think of it as your pricing assistant, making MSRP easy to set up, customize, and manage, no matter the size of your store.

• Why This Plugin Stands Out?

1. Flexibility Without Hassle

Want to show the MSRP next to your selling price? Or maybe highlight savings for your customers?

This plugin gives you all the tools to do it in just a few clicks.

2. Saves You Time

No need to update each product manually! Yeb, with bulk editing features, you can apply MSRP to multiple products at once, perfect for large stores.

3. Customizable Display Options

Whether you want the MSRP to appear on the product page, in the add to cart, or during checkout, this plugin lets you decide.

You can even tweak the text and style to match your store’s design.

Advantages of Combining MSRP and Wholesale Pricing in WooCommerce

Together, these strategies help you serve different types of buyers while keeping your pricing organized and transparent.

• Why Combine MSRP and Wholesale Pricing?

1. Balance Retail and Bulk Sales

Imagine you sell coffee makers.

Retail customers see MSRP: $100 and your discounted price of $80, which builds trust and highlights savings.

Meanwhile, wholesale buyers pay $60 each when ordering 10 or more, rhis setup works for both audiences without creating confusion.

2. Boost Credibility

By displaying MSRP, you show retail customers the product’s full value. At the same time, wholesale buyers understand the suggested price, which helps them plan their profits when reselling.

3. Streamline Your Pricing Strategy

Instead of juggling different pricing systems, combining MSRP and wholesale pricing creates a unified approach that works for everyone.

It simplifies management while maximizing your store’s potential.

• The Results You Can Expect

• • Retail customers see clear savings and feel confident in their purchases.
  • Wholesale buyers trust your pricing and return for more bulk orders.
  • You save time and reduce errors by managing both pricing strategies efficiently in one place.

You may be interested in:

Case Study: How Limitless Transfers Boosted Bulk Sales Using the Price by Quantity Plugin

Conclusion

👉 Here’s a quick recap of what we covered:

• MSRP helps show customers the value of your products and builds trust with transparent pricing.
• Wholesale pricing supports bulk sales, ensuring retailers can profit from reselling.
• Key differences include their purpose: MSRP targets retail customers, while wholesale pricing is designed for businesses.
• When to use them depends on your audience, MSRP for retail sales and wholesale for bulk buyers.
• Combining both creates a balanced pricing strategy that serves all customer types.
• Plugins like the “MSRP (RRP) Pricing for WooCommerce” make managing both pricing models effortless and effective.
• With the right strategy, MSRP vs Wholesale pricing becomes less about choosing one and more about using both to meet your business goals and grow your WooCommerce store.

FAQs

• What does MSRP mean in wholesale?

In wholesale, MSRP (Manufacturer’s Suggested Retail Price) is the price the manufacturer recommends retailers use when selling the product to customers.

It’s a guideline for retail pricing, not the price paid by wholesalers.

• What is an example of MSRP?

A coffee maker might have an MSRP of $100, retailers display this as the product’s full price but may sell it at a discounted price, such as $80, to highlight customer savings.

• What is the MSRP in inventory?

In inventory, MSRP represents the recommended selling price for the product, it’s used as a reference point to showcase value and calculate potential profits.

• How to calculate MSRP?

Manufacturers typically calculate MSRP by factoring in:

• • Production costs
  • Distribution expenses
  • Desired profit margin
  • Market conditions and competitor pricing

Retailers don’t calculate MSRP but follow the one set by the manufacturer.

• What is the MSRP of a reseller?

The MSRP of a reseller is the suggested price at which the reseller sells the product to customers, it’s not the wholesale price but the value displayed to end buyers.

• What is the MSRP of a product?

The MSRP of a product is the recommended retail price set by the manufacturer to represent its full value to customers, it helps standardize pricing across stores.