> For the complete documentation index, see [llms.txt](https://learn.moselle.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://learn.moselle.io/faq/fundamentals/what-is-the-difference-between-msrp-and-asp.md).

# What is the difference between MSRP, ASP & SRP?

Learn the difference between MSRP, ASP, and SRP, why the gaps matter for pricing strategy, and how Moselle uses all three to project revenue in your forecasts.

{% hint style="info" %}
**Quick Answer:** MSRP (Manufacturer's Suggested Retail Price) is the flat, unchanging price a manufacturer recommends you sell a product for. ASP (Average Selling Price) is the actual average price customers have paid historically, after discounts and promotions. SRP (Suggested Retail Price) is Moselle's forward-looking, **month-by-month** view of the net price an item is expected to sell at once any planned discounts are applied. Comparing all three shows you sticker price, historical reality, and planned reality side by side. On a top-down plan, the model that built it decides which view matches your revenue goals.
{% endhint %}

## 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. In Moselle, MSRP is a single, flat price for an item — it doesn't change from month to month.

## 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. In Moselle, ASP comes from your recorded sales as a single rate per item and channel — the most recent month's average, applied evenly across every month of your forecast. It does not move month to month the way a discount calendar does.

{% hint style="info" %}
**Two things to know about the ASP view.** A product with no recorded sales on a channel has no average to draw on, so it falls back to that product's MSRP — the figure you see is sticker price, not history. And the ASP view is unavailable while your forecast is grouped by **Line**; expand to Sub-Line, SKU, or Channel to see it.
{% endhint %}

## SRP Explained

**SRP (Suggested Retail Price) is** the net price Moselle expects an item to actually sell at in a given channel and month, once any discount you've planned for that period is applied. Unlike MSRP and ASP, which each apply one flat rate across your whole forecast, SRP is calculated separately for **every month** — so it moves with your discount and promotion calendar rather than staying fixed.

{% hint style="warning" %}
SRP isn't the same as MSRP even though both names reference a "suggested" price. MSRP is the undiscounted list price; SRP is what the item is actually expected to net once discounts for that specific month are factored in.
{% endhint %}

If you haven't planned a discount for an item in a given channel and month, its SRP for that month equals MSRP. Discounts can be set at the individual item level or at the channel level — when both exist for the same month, the item-level discount takes precedence.

## Why the Differences Matter

Comparing MSRP, ASP, and SRP tells you important things about your business:

* **Pricing competitiveness** — A large gap between MSRP and ASP may mean you're discounting heavily to move inventory
* **Margin pressure** — Consistent discounting erodes the revenue you keep per unit
* **Promotion effectiveness** — Tracking ASP before and after promotions shows their real revenue impact
* **Forward planning** — SRP lets you see the revenue impact of discounts you've already scheduled, before they happen
* **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). Historically it has sold for an average of $79.99 (ASP) after past promotions. You've set that channel to 80% of MSRP for March, so the blender's SRP for March is $79.99, while its SRP for every other month (still at 100%) is $99.99.

## How Moselle Uses MSRP, ASP, and SRP

In Moselle, all three metrics help you understand the financial impact of your forecasts. From your Scenario Plan, you can switch between viewing your projected revenue as:

* **MSRP** — Forecasted units multiplied by the catalog unit price (your "sticker price" potential)
* **ASP** — Forecasted units multiplied by the average selling price (what you're actually likely to receive based on historical sales)
* **SRP** — Forecasted units multiplied by the net price expected for that specific month, based on any discounts you've planned

Because SRP is recalculated per month, always review and edit SRP figures month by month rather than assuming one month's rate applies across your whole forecast — MSRP and ASP use a single flat rate, but SRP does not.

Comparing these projections helps you plan for expected revenue, historical-average revenue, and discount-adjusted revenue side by side, and identify where planned promotions will compress margins.

## Which View Matches My Revenue Goals?

On a top-down plan, one of these views gives you back the revenue figure you entered. Which one depends on the model that built the plan — its name appears in your plan's header.

| Model        | Converts revenue using          | View that matches your goals |
| ------------ | ------------------------------- | ---------------------------- |
| **Bombay**   | Average selling price           | **ASP**                      |
| **New York** | Your configured channel pricing | **SRP**                      |

A bottom-up plan starts from units rather than a revenue target, so no view is expected to return one.

{% hint style="warning" %}
On a **New York** plan, the MSRP and ASP views will not add up to the revenue goals you entered — only the SRP view will, because that is the pricing the model converted with. Reach for SRP when you want to check a New York plan against its targets.
{% endhint %}

## Frequently Asked Questions

### Which metric should I use for revenue planning?

**Answer:** Use **SRP** when you want revenue that reflects the pricing you've actually planned — it's the only view that follows your discount calendar month by month, and it's the view that matches your targets on a New York plan. Use **ASP** for a history-based view of what customers have paid, and to check a Bombay plan against the revenue goals you entered. Use **MSRP** to see full-price potential or to compare against manufacturer benchmarks.

### 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.

### Why does SRP change from month to month when MSRP and ASP don't?

**Answer:** MSRP and ASP each use one flat rate across your entire forecast. SRP is calculated separately for every month because it reflects whatever discount is scheduled for that specific month — so it moves whenever your discount calendar changes.

### What happens to SRP if I haven't scheduled any discounts?

**Answer:** With no discount set for an item and month, SRP equals MSRP for that month.

## Related Guides

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[Channel Pricing](/operations/catalog/channel-pricing.md)
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[Generate a Top-Down Forecast](/planning-and-execution/forecasting/phase-2-build-your-forecast/how-to-create-a-forecast/generate-a-top-down-forecast.md)
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[Import and Export Forecast](/planning-and-execution/forecasting/phase-2-build-your-forecast/import-and-export-forecast.md)
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[How Do I Calculate Months-on-Hand for Inventory?](/faq/fundamentals/how-to-calculate-months-on-hand.md)
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[What is Open-to-Buy Planning?](/faq/fundamentals/what-is-open-to-buy-planning.md)
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