MSRP stands for Manufacturer Suggested Retail Price, and means just that —- a suggested selling price for the retailer. It is a term used mostly in the car industry; otherwise the term list price is more commonly used.

MSRP is sometimes called the "sticker price," as dealerships used to place the MSRP of each new car on a large sticker on the windshield as a way to advertise to passing traffic. This practice has been largely replaced with a spec sheet on the side window that notes the MSRP. Some dealerships leave the MSRP off the spec sheet of certain models that are in demand, hoping to negotiate the best price possible. If the MSRP is posted, potential buyers might immediately expect to pay less than the dealership knows the market will bear. If the buyer has to ask for the MSRP, the dealer can talk about it along with various "extras" the vehicle has, starting the negotiations from a higher price.

The MSRP of a vehicle does not include taxes, registration, transportation to the dealership and other miscellaneous fees. While most people expect to get a discount off the MSRP, when all of the extraneous charges are added in, the price "out the door" might be close to, or even higher than, the MSRP. In fact, MSRPs used to be set fairly high, which allowed a good-sized discount, but in recent years the trend has tended towards setting the MSRP closer to the actual market value. Depending on the model and the demand, it is not unusual today to pay full MSRP at a dealership, plus the miscellaneous charges.

MSRP originated as a method of standardization and fair trade to protect small businesses and consumers alike. Prior to laws that enacted MSRPs, retailers were free to charge wildly different prices for the same product —- not just among different outlets, but to different customers at the same outlet. This was not only unfair to consumers, but made it difficult for smaller businesses to compete with large-volume dealerships. With a MSRP, all businesses and customers start off with the same set prices across the board and negotiate from there. MSRP does not eliminate free market trade, but attempts to put everyone on an even playing field.