What is the difference between MSRP & ASP?

Quick Answer: MSRP (Manufacturer's Suggested Retail Price) is the price a manufacturer recommends you sell a product for. ASP (Average Selling Price) is the actual average price customers pay after discounts, promotions, and markdowns. The gap between them reveals how much you're discounting and whether your margins are healthy.

MSRP Explained

MSRP (Manufacturer's Suggested Retail Price) is the "sticker price" a manufacturer recommends for a product. It serves as a starting point for pricing and is often used as a benchmark across retailers selling the same item.

ASP Explained

ASP (Average Selling Price) is the actual average price customers pay for a product over a given period. It accounts for discounts, promotions, markdowns, and any other price adjustments that bring the real transaction price below the listed price.

Why the Gap Between MSRP and ASP Matters

The difference between MSRP and ASP tells you important things about your business:

• Pricing competitiveness — A large gap may mean you're discounting heavily to move inventory

• Margin health — Consistent discounting erodes gross margins over time

• Promotion effectiveness — Tracking ASP before and after promotions shows their real revenue impact

• Inventory strategy — Products with a shrinking gap may be under-stocked; a widening gap may signal overstock being cleared

Example: A manufacturer suggests selling a kitchen blender at $99.99 (MSRP), but after running a 20% off promotion and some clearance sales, the average transaction price is $79.99 (ASP) — a 20% gap.

How Moselle Uses MSRP and ASP

In Moselle, both metrics help you understand the financial impact of your forecasts. When you export your forecast with financials, you can see projected revenue calculated two ways:

• MSRP Revenue — Forecasted units multiplied by the catalog unit price (your "sticker price" potential)

• ASP Revenue — Forecasted units multiplied by the average selling price (what you're actually likely to receive based on historical sales)

Comparing these two projections helps you plan for expected revenue versus ideal revenue and identify where discounting is compressing margins.

Import and Export Forecast

Frequently Asked Questions

Which metric should I use for revenue planning?

Answer: Use ASP for realistic revenue projections since it reflects what customers actually pay. Use MSRP when you need to compare against manufacturer benchmarks or calculate potential revenue at full price.

Can ASP be higher than MSRP?

Answer: Yes — if you sell at a premium above the manufacturer's suggested price, your ASP will exceed MSRP. This is common for exclusive or high-demand products.

How often does ASP change?

Answer: ASP shifts with every transaction, but most brands review it monthly or quarterly. Seasonal promotions, clearance events, and new product launches all cause ASP fluctuations.

Related Guides

How Do I Calculate Months-on-Hand for Inventory?What is Open-to-Buy Planning?