Category: 

What Is a Sticker Price?

Sticker prices indicate the amount of money car manufacturers want their vehicles to sell for to a customer.
Sticker price is usually clearly displayed on a car lot, but it is considered foolish to pay the whole amount.
Article Details
  • Written By: Mary McMahon
  • Edited By: Bronwyn Harris
  • Last Modified Date: 17 August 2014
  • Copyright Protected:
    2003-2014
    Conjecture Corporation
  • Print this Article
Free Widgets for your Site/Blog
The Bloodhound is the only animal whose evidence is admissible in court.  more...

August 22 ,  1902 :  US President Theodore Roosevelt became the first US President to ride in an automobile.  more...

A sticker price is the listed price for an item. Usually, it is the manufacturer's suggested retail price (MSRP), and it may be negotiable. The term "sticker price" comes from the idea that the price of an item is often marked with the use of a removable sticker, allowing people to conceal the true cost of the item if it is used for a gift. Being aware of the way in which sticker prices work can be an excellent way to get a good bargain.

Many people use the term specifically in the context of automobiles. When a car manufacturer builds a car, it determines an MSRP which is based on how much the car costs to build and how much the manufacturer thinks that people are willing to pay for it. In many areas, the MSRP must be clearly displayed, by law. Car purchasers would, as a general rule, be foolish to pay this price, however, as the MSRP may be radically different from the invoice price which the dealer paid for the car.

Ad

When people are exploring the purchase of a new car, many organizations highly recommend that they research the typical invoice price, along with the sticker price. Being aware of the invoice price can help a consumer, because he or she can drive a harder bargain for the car in question. It can also be a good gauge of the dealer's honesty, as the consumer knows exactly how low the dealer can go. In other cases, especially for coveted or very popular cars, the sticker price may be firm; most dealers know their markets well enough to be aware of how much they can realistically get for the vehicle.

The term is also used more generically simple to refer to various consumer goods. Many stores have sales offering X% off "sticker price," indicating that the entire store is discounted. In the case of a retail store, the sticker price may reflect the MSRP, or it may be further marked up. This choice is made by owners and managers, who balance the cost of the item to them against consumer desire.

The science of the sticker price is quite complex. Large firms may have an entire division devoted to pricing items to sell. The balance between too much and too little on a sticker price can sometimes be difficult to achieve, especially with higher end items. The sticker price also usually incorporates industry tricks such as ending in a "9" or a "5" to trick the consumer into feeling like he or she is paying less. For example, $29.99 feels like a lot less than $30.00, even though the difference is really quite minimal.

Ad

Discuss this Article

Sunny27
Post 4

Greenweaver- Wow, I had never thought of that. I know that most of the time when I go to a store the price is rarely ever on the package anymore.

There used to be custom price stickers on items so you would know what they cost. These stickers were put on items with the use of a pricing gun.

It was a tedious process for the stores which is why you don’t see many price gun stickers anymore. Instead inventory and pricing is tracked by a UPC bar code which a scanner registers at checkout.

GreenWeaver
Post 3

Mutsy- I do want to say that the one sticker that most people can not negotiate is with the vending machine price stickers.

The machine will only accept the price posted so there is no other choice but to pay the stated amount.

mutsy
Post 2

Comfyshoes- That is so true. I never pay the sticker price for a car.

Another place that I don’t pay the sticker prices is in garage sales. Garage sale price stickers are also set as a general guideline, but most people haggle and often pay less.

Yard sale price stickers are set to what the seller would like to have, but they often negotiate the price in order to make a sale.

comfyshoes
Post 1

It is true when thinking about the sticker price, I always think of the vehicle sticker price of a car.

The new sticker price is usually substantially higher than what the consumer will end of paying.

Most people negotiate the sale price stickers on these cars and often receive discounts from 5% to 10% of the vehicle sticker price.

For example,the Mini Cooper Sticker price according to Edmunds is $18,800. But the buyer will probably pay from $17,000 to $18,000 for the car.

Post your comments

Post Anonymously

Login

username
password
forgot password?

Register

username
password
confirm
email