Setting Prices
Any product can be given an MSRP, although they are especially common for automobiles, electronics, appliances, and other higher price goods.
Because it is set by the manufacturer, it does not change at different stores or locations. The price is meant to reflect the costs involved in manufacturing and selling the product, and in most cases, an average mark-up by retailers is taken into account. Suggested prices are set so that each participant in the selling process — the manufacturer, the wholesaler, and the retailer — can make a profit from the final sale. If the MSRP is set too low, and the retailer feels it cannot make enough money from selling the item, it may choose not to carry it.
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