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Information about Suggested Retail Price

The (manufacturer's) suggested retail price (MSRP or SRP), list price or recommended retail price (RRP) (originally, Monroney suggested retail price) of a product is the price the manufacturer recommends that the retailer sell it for. The intention was to help to standardize prices among locations. While some stores always sell at, or below, the suggested retail price, others do so only when items are on sale or closeout.

Suggested pricing methods may conflict with competition theory, as it allows prices to be set higher than would otherwise be the case, potentially negatively impacting consumers. However, resale price maintenance goes further than this and is illegal in many regions.

Much of the time, 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.

Suggested prices can also be manipulated to be unreasonably high, allowing retailers to use deceptive advertising by showing the excessive price and then their actual selling price, implying to customers that they are somehow getting a "discount" or a "great deal".

Game shows have long made use of suggested retail prices both as a game element, in which the contestant must determine the retail price of an item, or in valuing their prizes.

MSRP in the United States

Under earlier U.S. state Fair Trade statutes, the manufacturer was able to impose a fixed price for items. These fixed prices could offer some price protection to small merchants in competition against larger retail organizations. These were determined to be in restraint of free trade. However, some manufacturers have adopted MSRP — a price at which the item is expected to sell. This may be unrealistically high, opening the market to "deep discounters" who are able to sell products substantially below the MSRP while still making a profit. Recent trends have been for manufactures to set the MSRP closer to the "street price" — the price at which items actually sell in a free market.

Automobiles

A common use for MSRP can be seen in automobile sales in the United States. Prior to the spread of manufacturer's suggested retail pricing, there were no defined prices on vehicles and car dealers were able to impose arbitrary markups, often with prices adjusted to what the salesperson thought the prospective purchaser would be willing to pay for a particular vehicle.

Currently, the MSRP, or "sticker price" — the price of a vehicle as labeled by the manufacturer, is clearly labeled on the windows of all new vehicles. The actual price paid to the manufacturer by the dealer (and all rebates/incentives the manufacturer provides to the dealer) is becoming common knowledge. This information is becoming readily available via the internet. This information is helping consumers purchase vehicles with more ease, avoiding any need to shop from dealer to dealer, because the consumer is much more informed than ever before.

Minimum advertised price

Minimum advertised price (also known as resale price maintenance) is the practice of restricting pricing at the consumer level. Price fixing agreements are illegal in many countries when members and terms in the agreement match predefined legal criteria. Fixed pricing established between a distributor and seller or between two or more sellers violates antitrust laws in the United States. A minimum advertised price policy between a distributor and seller is acceptable as long as it is referring to the advertised price and not the selling price. This does not affect a single manufacturer setting the price on a "take it or leave it" basis.

Rack rate

Rack rate is the travel industry term for the published full price of a hotel room, which the customer would pay if he or she walked into the hotel off the street and asked for a room. While lower than the maximum rate that the hotel may be allowed to charge under local laws, it is higher than the rate most travel agents can book for their customers. Sometimes the terms run of the house or walk-up rate are used to refer to the same highest rate. The term rack rate is also used by travel-related service providers, such as car rental companies or travel mobile phone rental companies, to refer to the same highest rate they would charge customers with no pre-bookings.

External links

Monroney sticker in the industry (or simply a window sticker), named after Almer Stillwell "Mike" Monroney, the Oklahoma senator who sponsored the Automobile Information Disclosure Act of 1958.
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Aspinwall Classification System (Leo Aspinwall, 1958) classifies and rates products based on five variables:
  1. Replacement rate (How frequently is the product repurchased?)
  2. Gross margin (How much profit is obtained from each product?)

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price is the assigned numerical monetary value of a good, service or asset.

The concept of price is central to microeconomics where it is one of the most important variables in resource allocation theory (also called price theory).
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Manufacturing (from Latin manu factura, "making by hand") is the use of tools and labor to make things for use or sale. The term may refer to a vast range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw
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Retailing consists of the sale of goods or merchandise, from a fixed location such as a department store or kiosk, in small or individual lots for direct consumption by the purchaser.[1] Retailing may include subordinated services, such as delivery.
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Sell can mean: to sell
  • A verb relating to sales
  • Sell (professional wrestling)
  • In investing to exchange an asset for consideration
  • In theatre, to 'play to the crowd'
  • In SellOver

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Retailing consists of the sale of goods or merchandise, from a fixed location such as a department store or kiosk, in small or individual lots for direct consumption by the purchaser.[1] Retailing may include subordinated services, such as delivery.
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Sale may refer to:

Places

  • Sale, Greater Manchester, England
  • Sale Urban District, a former local government district unit of Sale, Greater Manchester.

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A closeout or clearance is the final sale of an item or items to zero inventory. It may be a given model of item that it not selling well, or in the case of the final closure of a retailer because of a relocation, a fire (fire sale), or especially because of a bankruptcy.
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Resale price maintenance is the practice whereby a manufacturer and its distributors agree that the latter will sell the former's product at certain prices (resale price maintenance), at or above a price floor (minimum resale price maintenance) or at or below a price ceiling
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Wholesaling is the sale of goods or merchandise to retailers, to industrial, commercial, institutional, or other professional business users, or to other wholesalers and related subordinated services.
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Bulk can refer to:
  • Bulk mail
  • Bulk purchasing
  • Bulk liquids
  • Bulk material handling
  • Bulk - British professional wrestler
  • Bulk and Skull, a pair of characters in the Power Rangers universe.

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distributor is a device in the ignition system of an internal combustion engine that routes high voltage from the ignition coil to the spark plugs in the correct firing order. The first high-tension distributor was developed around 1904, independently by Napier, Bouton, and Winton.
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The word manipulation can refer to:
  • Joint manipulation
  • Social influence
  • Sleight of hand tricks in magic.

See also

  • Abuse
  • Advertising
  • Brainwashing
  • Charisma
  • Fraud
  • Indoctrination
  • Love bombing
  • Machiavellianism

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worldwide view.
False advertising is the use of deliberately false statements or deception in advertising, in order to gain a commercial advantage. As advertising has the potential to persuade people into commercial transactions that they might otherwise avoid, many
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customer is someone who makes use of or receives the products or services of an individual or organization. The word historically derives from "custom," meaning "habit"; a customer was someone who frequented a particular shop, who made it a habit to purchase goods there, and with
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discounting is the process of finding the present value of an amount of cash at some future date, and along with compounding cash forms the basis of time value of money calculations.
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game show involves members of the public or celebrities, sometimes as part of a team, playing a game, perhaps involving answering quiz questions, for points or prizes. In some shows contestants compete against other players or another team whilst other shows involve contestants
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Motto
"In God We Trust"   (since 1956)
"E Pluribus Unum"   ("From Many, One"; Latin, traditional)
Anthem
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Fair trade is an organized social movement and market-based model of international trade which promotes the payment of a fair price as well as social and environmental standards in areas related to the production of a wide variety of goods.
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A statute is a formal, written law of a country or state, written and enacted by its legislative authority, perhaps to then be ratified by the highest executive in the government, and finally published. Typically, statutes command, prohibit, or declare policy.
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Manufacturing (from Latin manu factura, "making by hand") is the use of tools and labor to make things for use or sale. The term may refer to a vast range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw
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Merchants function as professionals who deal with trade, dealing in commodities that they do not produce themselves, in order to produce profit.

Merchants can be of two types:
  1. A wholesale merchant operates in the chain between producer and retail merchant.

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Contract Law
Part of the common law series
Contract
Contract formation
Offer and acceptance  · Mailbox rule
Mirror image rule  · Invitation to treat
Firm offer  · Consideration
Defenses against formation
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A discount store is a type of department store, which sell products at prices lower than those asked by traditional retail outlets. Most discount department stores offer wide assortments of goods; others specialize in such merchandise as jewelry, electronic equipment, or
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Libertarianism

Schools of thought
Agorism
Anarcho-capitalism
Geolibertarianism
Green libertarianism
Right-libertarianism
Left-libertarianism
Minarchism
Neolibertarianism
Paleolibertarianism
Progressive libertarianism


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automobile (from Greek auto, self and Latin mobile moving, a vehicle that moves itself rather than being moved by another vehicle or animal) or motor car (usually shortened to just car) is a wheeled passenger vehicle that carries its own motor.
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Motto
"In God We Trust"   (since 1956)
"E Pluribus Unum"   ("From Many, One"; Latin, traditional)
Anthem
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car dealership or vehicle local distribution is a business that sells new cars and/or used cars at the retail level, based on a dealership contract with an automaker or its sales subsidiary. It employs automobile salespeople to do the selling.
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Markup is a term used in marketing to indicate how much the price of a product is above the cost of producing and distributing the product. It can be expressed as a fixed amount or as a percentage. There are numerous variations of each.
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