MSRP: suggested retail price in closeout deals
MSRP stands for manufacturer's suggested retail price: the price a manufacturer recommends retailers charge. In closeout deals it is often the retail value on a manifest, but many products sell well below MSRP, so a load priced as a percentage of MSRP can look cheaper than it is.
Reviewed by Tyler Kober · Updated
Key takeaways
- MSRP is a suggestion, not a market price; actual selling prices are often lower.
- A low percentage of an inflated MSRP can still be an expensive load.
- Check real prices by exact UPC match before you trust any retail total.
What does MSRP mean?
MSRP is the manufacturer's suggested retail price: the price a manufacturer recommends that stores charge consumers. Retailers are generally free to set their own price, and many sell below MSRP. In the closeout trade, MSRP is often the "retail value" column on a manifest.
How MSRP is used in closeout deals
Closeout loads are often priced as a percentage of their total retail value. When that retail value is MSRP, the whole deal rests on a number the market may not support. MSRP tends to overstate real prices most for:
- Older models replaced by a newer version.
- Competitive categories like electronics and small appliances, where street prices fall fast.
- Products that were always discounted, where MSRP was never the real shelf price.
- Discontinued goods, which are by definition no longer in normal retail.
MSRP holds up better for products with strict pricing policies, current items and some branded goods.
Example
Two loads are each offered at the same percentage of retail. In the first, the manifest uses MSRP for older-model electronics that now sell well below it. In the second, the manifest uses current shelf prices for everyday housewares. The first looks the same on paper but delivers far less resale value per dollar, because its "retail" was never what shoppers paid. Checking a sample of UPCs shows the gap before any money moves.
The common confusion
MSRP is often confused with two other prices:
| Price | Who sets it | What it means |
|---|---|---|
| MSRP | Manufacturer | Suggested consumer price |
| MAP | Manufacturer | Lowest price authorized sellers may advertise |
| Street price | Retailers | What shoppers actually pay today |
For resale, the street price is the one that matters. That is why buyers convert any MSRP-based deal into percent of retail on real prices before offering. See why percent of MSRP can mislead.
Related terms
Frequently asked questions
Is MSRP the same as the retail price?
Not always. MSRP is what the manufacturer suggests. Stores set their own prices and often sell below MSRP, especially for older models or competitive categories like electronics. Some products rarely sell anywhere near MSRP. In closeout pricing, the real current selling price is what matters to your resale.
Why do manifests use MSRP?
Because it is easy to get and consistent across a load. Sellers can pull it from product data without checking each item's market price. That makes it a convenient reference but a weak guide to resale value. Some manifests use store ticket prices instead, which can differ again.
How do I check if an MSRP is realistic?
Look up the exact UPC on major retail sites and recent sales, and compare the price with the manifest figure. If the UPC does not match exactly, treat the retail figure as unverified. Skyline Dealz shows a retail comp only on an exact UPC match and labels everything else no verified comp.
Related
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