Ne sousestime jamais le peuple de gauche , il a des convictions et une intelligence que d ' autres n ' ont point . Tu as dit de la merde , point . <| sep |> I am gracious <| sep |> The list price is called the Manufacturer ' s Suggested Retail Price you ' ll often see this abbreviated as MSRP . It ' s right there in the titlesuggested . Practically , the MSRP is a good starting point for negotiations between manufacturers , distributors , and retailers . In theory , the way everything works is the manufacturerdistributor will sell an item for half of the MSRP the retailer gets about 50 % of the cost of the item , which is used to pay for the cost of selling the items wages , utilities , rent , etc and pockets the rest as profit . So a factory might make a toy that costs $ 5 to produce , then sell it at a wholesaler ' s price of $ 20 , pocketing the difference as profit . There ' s often , though not always , a distributor level here as well , who takes a cut for transportation and logistical support and profit . The retail buys it wholesale for $ 20 and sells it for the MSRP of $ 40 . When you see an item on sale , that ' s cutting into the retailer ' s $ 20 profit . Now , in reality , while the process is the same , the amount of money and proportions are different . Wal Mart , for example , can get manufacturers to sell for even less because they can command such a huge amount of volumeit ' s better for a manufacturer to make a $ 13 profit instead of $ 15 per unit if they ' re selling 500 , 000 units instead of 50 , 000 . But Wal Mart might still sell it at the MSRP , taking even more of the profit . Target or CostCo or other big box stores might not have as big of a footprint , and so don ' t have as much clout . But the manufacturer can ' t use Wal Mart ' s figure as their List Price , because they ' re not going to publicly sell an item to one store for $ 13 and another for $ 15 . Basically , the MSRP is the starting point which is , in reality , double the wholesale price and then everyone negotiates downward .