What is the difference between MSRP & ASP?

MSRP (Manufacturer's Suggested Retail Price) is the price the manufacturer recommends you sell a product for. It's the "sticker price" they think the item should cost in your store.

ASP (Average Selling Price) is the actual average price you're selling that product for after discounts, promotions, and markdowns. It's what customers are really paying.

The key difference: MSRP is the ideal starting point, while ASP shows the reality of what's happening in the market.

Example: A manufacturer suggests selling a kitchen blender at $99.99 (MSRP), but after running a 20% off promotion and having some clearance sales, you're actually selling it for an average of $79.99 (ASP).

Why it matters: The gap between MSRP and ASP tells you important things about your pricing strategy, how competitive you are, and whether you're maintaining healthy margins or heavily discounting to move inventory.