What is a Manufacturers Suggested Retail Price (MSRP)?
Manufacturer’s Suggested Retail Price (MSRP) is the price endorsed by manufacturers for retailers to use when selling their products. It’s also referred to as SRP (Suggested Retail Price), or RRP (Recommended Retail Price); which helps standardize the price through various locations as it plays a major role in controlling their brand equity.
Retailers can still set their own price but they will have to base it on the MSRP which is usually agreed upon in their contract. However, the manufacturer has every right to refuse future orders from retailers should their items be priced too far from what was suggested.