What is the meaning of MSRP?

What’s MSRP? I see MSRP around stores a lot and want to know what it means.

“This is a question people ask a lot, so you’re not alone in wondering this!
MSRP means Manufacturer’s Suggested Retail Price. The price is what the manufacturer recommends the retailer sell the product for.
The price takes into account things like the:
  • cost to make the product.
  • profit for the manufacturer.
  • cost to transport the vehicle.
  • profit for the retailer.
The retailer, which can be any merchant in any industry, can sell either above or below the MSRP. In the car industry, it’s common practice for dealers to price the vehicle above the MSRP so they can make a profit. The good news is that this means you can negotiate the price when buying a new car to help you save money.
You can also save money on your car insurance, though you can’t negotiate rates. Instead, you can save money on car insurance by shopping around and comparing rates. The Jerry app makes comparison shopping easy by pulling quotes from the top providers and delivering the best deals to your phone in minutes for free.”
Rachel Juillerat
Answered on Sep 10, 2021
Rachel Juillerat has her Master's in Publishing & Writing from Emerson College. You can view her work in the Independent, Cupid's Pulse, and the Penmen Review. She has worked in personal finance for five years before transitioning to insurance. She lives in Boston, where she spends her time exploring small New England towns, learning new skills, and napping through her cat's zoomies.

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