What does MSRP stand for? It stands for manufacturer's suggested retail price, the price a maker recommends a store charge for a product. You see it on car window stickers, electronics boxes, appliance tags and online listings, often next to a lower sale price.
The key word is suggested. Stores can usually charge more or less than the MSRP, and many do. The figure gives shoppers a common starting point for comparing deals, and it gives stores a reference when they set their own prices.
Quick facts
Stands for
Manufacturer's suggested retail priceType
InitialismAlso called
List price, sticker price (for cars)Seen on
Car stickers, product boxes, shop listingsUK equivalent
RRP, recommended retail priceNot to be confused with
MAP, minimum advertised price
What does MSRP stand for? The four words
| Letter | Word | What it tells you |
|---|---|---|
| M | Manufacturer's | The company that made the product set the figure |
| S | Suggested | It is a recommendation, not a rule |
| R | Retail | It is meant for sales to shoppers, not to stores |
| P | Price | The amount a customer would pay before tax and fees |
The maker sells to stores at a lower wholesale price. The gap between that and the MSRP is meant to cover the store's costs and profit. Because each letter is read on its own, MSRP is an initialism.
What does MSRP mean on a car?
New cars sold in the United States must carry a window sticker, often called the Monroney sticker, that lists the MSRP for that exact vehicle. It shows the base price, the price of each factory option, the destination charge and the total. The sticker also lists fuel economy and safety ratings.
At a car lot: The salesperson says, "This one is priced at MSRP." That means the dealer is asking the full sticker total, with no discount and no extra markup. Taxes, title and registration fees come on top.
When demand is high, some dealers add a market adjustment above MSRP. When demand is low, cars often sell below it. The invoice price, what the dealer paid the maker, is usually lower than MSRP.
MSRP on everyday products
Electronics, toys, tools and clothing often carry an MSRP too. Stores display it to show how much you save:
- A tag that reads "MSRP" with a higher figure, then "Our price" with a lower one, means the store is selling below the suggested price.
- "Compare at" or "list price" usually points to the same idea.
- Online listings may show the MSRP crossed out above the current price.
A big gap does not always mean a great deal. Some products are almost always sold below MSRP, so compare actual prices from several stores. The SKU or model number helps you match the exact item.
MSRP vs MAP, invoice and RRP
- MAP: minimum advertised price, a floor set by the maker for the figure a store may put in an ad. Stores may still sell for less at checkout in some cases.
- Invoice price: what the store or dealer paid. It is lower than MSRP.
- RRP: recommended retail price, the British name for the same idea as MSRP.
- OEM: original equipment manufacturer. You may see OEM parts listed with their own MSRP. See the OEM page.
Shopping and retail terms like these are collected in the business acronyms hub.
Using MSRP in a sentence
- "The sticker shows an MSRP that includes the sunroof package."
- "Is that the MSRP or the price after the rebate?"
- "The console sold out, and resellers were asking far above MSRP."
- "We never charge more than MSRP."
Use an before MSRP, because M is said "em" with a vowel sound. The plural, when needed, is MSRPs. Shoppers often type "what is msrp stand for" into a search box; the standard way to ask is "what does MSRP stand for" or simply "what is MSRP."
Questions people ask
What does MSRP mean?
It means the price the manufacturer suggests a store charge. It is a guide, so the actual selling price can be higher or lower.
Do you have to pay MSRP for a car?
No. Car prices are often negotiable, and many cars sell below MSRP. In times of short supply, some dealers ask more than MSRP.
Does MSRP include tax?
No. MSRP is the price before sales tax, registration and other government fees. On cars, it does include the destination charge listed on the sticker.
What is the difference between MSRP and invoice price?
MSRP is the suggested price for shoppers. Invoice price is what the dealer pays the maker, which is lower.
Is MSRP the same as list price?
In everyday use, yes. Both mean the price a maker publishes before any discounts.