India and Bangladesh do not have a list price but instead have a maximum retail price. In that case, the list price is used to convey the manufacturer's suggested retail price.Ĭoncepts similar to the list price exist in many countries, but equivalents of the list price often cannot be compared directly internationally since products and services may differ to meet different legal requirements, and price figures communicated to consumers must include taxes and duties (for example) in the EU but not in the US. In certain supply chains, where a manufacturer sells to a wholesale distributor, and the distributor in turn sells to a reseller, the use of SRP is used to denote Suggested Reseller Price. Much of the time, shops/stores charge less than the suggested retail price, depending upon the actual wholesale cost of each item, usually purchased in bulk from the manufacturer, or in smaller quantities through a distributor. However, resale price maintenance goes further than this and is illegal in many regions. Suggested pricing methods may conflict with competition theory, as they allow prices to be set higher than would otherwise be the case, potentially negatively affecting consumers. While some shops/stores always sell at, or below, the suggested retail price, others do so only when items are on sale or closeout/clearance.
The intention was to help standardize prices among locations.
The list price, also known as the manufacturer's suggested retail price ( MSRP), or the recommended retail price ( RRP), or the suggested retail price ( SRP) of a product is the price at which the manufacturer recommends that the retailer sell the product. This 1916 advertisement distinguishes the list price and a lower our special price.
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