'MSRP' or 'Maunufacturers Suggested Retail Price'. Do you know how it works in the United States?

It may seem silly to some to talk about, but it is rather interesting.

Did you know that 'msrp' can be anything a manufacturer wants it to be? It's true.

Lets say you and I both manufacture those infamous widgets economists and accountants like to refer to. And lets say that our widgets are virtually alike in almost every aspect, except maybe color and smell.

Well, you and I both walk into Ballsmart because we both are trying to get the store to carry and sell our widgets exclusively. Widgets normally sell for $5.00 each on sale, and that is about what ours will sell for, regardless of which one of us is successful in convincing Ballsmart to carry our widgets.

Here is one way we can help ourselves out. We put a higher 'msrp' on our widgets. Why, you ask? Because then Ballsmart can claim a higher discount on the widgets they sell over the competition. So, if my widgets have an 'msrp' of $15.00 and your widgets have an 'msrp' of $10.00, Ballsmart would be smart to take my widgets because they can then legally claim a larger discount.

Interesting, isn't it?