The MSRP and MAP prices

Manufacturer’s Suggested Retail Price (MSRP)

Manufacturers evaluate the market and define (not dictate, but recommend) the one and only price for their products. They try to maintain a single price for their products in all regions, worldwide. This price already includes the estimated profit for the seller (based on the manufacturer's opinion).

Minimum Advertised Price (MAP or M.A.P.)

Basically, it is the price under which the seller is forbidden to advertise the product (including displaying it on the website). Usually this restriction is defined between the manufacturer and the seller. Violation of this clause, just as any other clause of an agreement, can lead to sanctions towards the seller by the manufacturer.

What's the point?

It is thought that in some cases the seller will want to sell the product cheaper than it is allowed by the agreement.
For such cases Magento introduced the MAP and MSRP system.

If the seller specifies a lower price, then clients will see the recommended price and a link in the catalog allowing them to specify the price by which they'll be able to receive the product.
And in the end, the manufacturer's happy, and the seller doesn't lose any clients.

Last modify date: Thursday, November 3, 2016