What's an MSRP?

MSRP means "manufacturer's suggested retail price." It is the price that a producer recommends a retailer sells a particular item to consumers. Retailers often establish different price points than the MSRP, especially when offering discounts to clear out extra inventory.

Though used in other sectors, MSRP is especially common in the car industry. Dealerships often include the MSRP when promoting a sale price to buyers on the lot. If an MSRP is $19,995, for instance, a dealer price of $17,995 may look more favorable to a customer. In non-auto sectors, the MSRP is often known by other terms, such as "list price."