MSRP – “Manufacturer’s Suggested Retail Price”

MSRP – “Manufacturer’s Suggested Retail Price”

June 6th, 2009

The second wholesale term to understand is MSRP.

Once  you set up an account with  a real wholesale supplier, you will receive a Dealer Price List from them.   This is a confidential price list.   The column headed:  “MSRP” refers to the Manufacturer’s Suggested Retail Price.  This is the price that the manufacturer suggests you sell the product for.   The MSRP is intended to help you set price levels.  The MSRP is not mandatory.  Within reason, you can modify your price to compete with other sellers in your niche. 

Don’t make the mistake of being the lowest price seller.  You will start a price war where everyone ends up with no profit margin left.  This way nobody wins.  If your Dealer Price List does provide the MSRP, ask your supplier for a MSRP List.  The MSRP can be used as a quick method to see which products offer you better profit margins.

Click to review more of Chris Malta’s “Wholesale Tips”

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