What is MSRP?
MSRP stands for Manufacturer
Suggested Retail Price, and means just that —- a suggested
selling price for the retailer. It is a term used mostly in the
car industry; otherwise the term list price is more commonly used.
MSRP is sometimes called the "sticker price," as dealerships
used to place the MSRP of each new car on a large sticker on the
windshield as a way to advertise to passing traffic. This practice
has been largely replaced with a spec sheet on the side window that
notes the MSRP. Some dealerships leave the MSRP off the spec sheet
of certain models that are in demand, hoping to negotiate the best
price possible. If the MSRP is posted, potential buyers might immediately
expect to pay less than the dealership knows the market will bear.
If the buyer has to ask for the MSRP, the dealer can talk about
it along with various "extras" the vehicle has, starting
the negotiations from a higher price. |
