--- title: "What Is MSRP?" url: https://www.uncap.com/glossary/msrp author: "Denis Dyli" published: 2026-10-28 updated: 2026-10-28 summary: "MSRP, the manufacturer's suggested retail price, is the retail price a manufacturer recommends that dealers and retailers charge for its product. In B2B selling it is the reference price a manufacturer publishes to its resellers, alongside the wholesale price they pay. The key word is suggested: each reseller decides its own retail price." --- # What Is MSRP? > MSRP, the manufacturer's suggested retail price, is the retail price a manufacturer recommends that dealers and retailers charge for its product. In B2B selling it is the reference price a manufacturer publishes to its resellers, alongside the wholesale price they pay. The key word is suggested: each reseller decides its own retail price. **MSRP**: MSRP, the manufacturer's suggested retail price, is the retail price a manufacturer recommends that dealers and retailers charge for its product. In B2B selling it is the reference price a manufacturer publishes to its resellers, alongside the wholesale price they pay. The key word is suggested: each reseller decides its own retail price. ## How it works MSRP is the retail price a manufacturer suggests that dealers and retailers charge for its product. In the Federal Trade Commission's words, the key word is suggested, and a dealer is free to set the retail price of the products it sells. The FTC's guidance on manufacturer-imposed requirements spells out what that means in the supply chain: - The dealer's choice: a dealer can set the price at the MSRP or at a different price, as long as the dealer comes to that decision on its own. - The manufacturer's choice: a manufacturer can decide not to use distributors that do not adhere to its MSRP. - Independent pricing: competitors at each level of the supply chain must set prices independently. Manufacturers cannot agree on wholesale prices, and dealers cannot agree on retail prices. This is general information, not legal advice. ## MSRP vs. list price, wholesale price and MAP - List price: the FTC's Guides Against Deceptive Pricing speak of "a manufacturer's list price, or suggested retail price" as one figure. - Wholesale price: the price a reseller pays the manufacturer or distributor for the product. The MSRP is what the manufacturer suggests the reseller charge its own customers. - MAP pricing: a minimum advertised price is a supplier's floor on the price resellers may advertise. MSRP is a suggested selling price, while MAP limits only the advertised price. ## MSRP in advertising and on new-car labels The FTC's pricing guides (16 CFR 233.3) cover manufacturers, distributors and retailers who advertise a reduction from a manufacturer's suggested retail price. The test is whether substantial sales are made at that price in the advertiser's trade area: an advertised reduction from a suggested price significantly above the highest price at which substantial sales are made there can mislead. For new cars, the suggested retail price is also a disclosure requirement. Under 15 U.S.C. 1232, every manufacturer of new automobiles must fix a label to the windshield or side window before delivery to a dealer, and the label must disclose the retail price of the automobile suggested by the manufacturer. ## Example A manufacturer sells a pump to distributors at a wholesale price of $60.00 and publishes an MSRP of $100.00. - Distributor A sells at MSRP: $100.00 - $60.00 = $40.00 gross profit per pump. - Distributor B sells to contractor accounts at 20% below MSRP: $100.00 x 0.80 = $80.00, so $80.00 - $60.00 = $20.00 per pump. Both start from the same suggested price. Each sets its own selling price. ## On Shopify You can set a compare-at price for a product or variant from its product details page in the Shopify admin. To set a sale price, Shopify says to set the Compare-at price to the original price of the product and make sure it is higher than the Price. Your theme controls whether sale prices are displayed on your storefront, and where. For wholesale buyers, Shopify B2B runs on the Basic, Grow, Advanced and Shopify Plus plans. Catalogs let B2B customers purchase the included products at the prices you set. A catalog can raise or lower the product price by a percentage or set fixed prices for specific products, and fixed prices override the overall adjustment. A catalog's Compare At field can display the product's original base price or MSRP next to the buyer's price. ## How Uncap helps Uncap's guide to [Shopify wholesale setup](/post/shopify-b2b-wholesale-setup) shows how catalog pricing starts from a base price: an overall adjustment raises or lowers prices by a percentage across the catalog, 20% below MSRP for all items, for example. For most B2B operators, the guide adds, the pricing authority is the ERP, not Shopify. ## Related terms - Net price - Trade discount - Tiered pricing - Cost-plus pricing - Distributor ## Sources - FTC: Manufacturer-imposed requirements (Guide to Antitrust Laws) - 16 CFR 233.3: Advertising retail prices established or suggested by manufacturers - 15 U.S.C. 1232: Label and entry requirements ## Frequently asked questions ### What does MSRP stand for and what does it mean? MSRP stands for manufacturer's suggested retail price: the retail price a manufacturer recommends for its product. The FTC stresses that the key word is suggested, because a dealer is free to set the retail price of the products it sells. ### Is the MSRP the price you pay? Not necessarily. MSRP is a suggested retail price, and a dealer can sell at the MSRP or at a different price, as long as it decides on its own. A business that buys the product to resell it pays a wholesale price and then sets its own retail price. ### Can a reseller sell above or below MSRP? Yes. Under FTC guidance, a dealer can set the price at the MSRP or at a different price, as long as the dealer comes to that decision on its own. A manufacturer, in turn, can decide not to use distributors that do not adhere to its MSRP. ### How do you find the MSRP of a new car? Look at the window label. Federal law (15 U.S.C. 1232) requires every manufacturer of new automobiles to fix a label to the windshield or side window before delivery to a dealer, disclosing the retail price of the automobile suggested by the manufacturer.