Manufacturer's Suggested Retail Prices.

  The other day, I looked at a sale and the prices were based on the manufacturer's suggested retail prices (MSRP) to prove I would save a ton of money if I purchased anything.

The MSRP is particularly pervasive in the car market.  The MSRP is also known as the "sticker price" and must be displayed on all new vehicles per a 1958 law.  If it is not there, the dealer must provide it if asked.

Although this price is set by the manufacturer and displayed on all vehicles, there is no obligation for dealers to actually charge that price. They have the right to sell it for more or less than the MSRP.  The suggested price does not include taxes, license, and other extra charges. 

In addition, it is usually set higher so it looks like people are getting a deal when they pay less. If the MSRP is different among various dealers, it may be because some charge the cost of getting the vehicle to the destination as a separate charge or it may be included.  It depends. 

Students should also be aware businesses do not pay the MSRP.  It is the suggested selling price and most savvy purchasers know you are not going to pay the suggested retail price.  Many stores always sell items for less than the MSRP but use that price to prove you are getting a bargain.

Point of fact, I just purchased a video set for a series at $9.99 but the same page showed the list price (another name for MSRP) as $24.99 or I got a 60% discount.  Have students search various websites for certain items to see how the prices vary, even see if the list price is the same at all sites.  They could easily calculate the savings off list price and off the lowest price found.

What is nice is many stores such as Target, Walmart, Amazon, all have presences online so it is much easier to compare prices of various objects from the classroom. It no longer requires assigning students the job to go to the store to find the price.  Life is a bit easier.

Let me know what you think.  Have a great day.