MSRP is short hand for Manufacturer's Suggested Retail Price.

For corporate gifts this is a universal way to determine the value of the items presented. Of course it's only a suggestion and retailers are generally free to set their own price for the items they sell.

One of the problems with retailers setting their own price is competition can drive retailers to sell merchandise for a lower value, sometimes even lower than their cost. This creates two problems. When retailers drive down the retail price of a brand they drive down the value of the brand. Many retailers also use this tactic to bring you to a store. Once in the store you end up buying extra product or services you don't need.

Manufacturers like Bose, Jawbone, Montblanc, TAG Heuer and Waterford protect the value of their brand by using MAP pricing. Ultimately higher pricing protects you. Although corporate pricing allows you to buy merchandise at below retail value it's important that the recipient feel they have been given a gift of high value.

Last updated on October 31, 2011 by Greg Greunke