Manufactures'suggested Retail Price

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Manufactures’ Suggested Retail Price (MSRP) The Manufacturer’s Suggested Retail Price (MSRP), list price or recommended retail price (RPP) of a product is the cost at which the manufacture proposes that the retailer offer the product. Although the goal is to aid to institutionalize costs, it is not often the value the retailer use or the value the customers are willing to pay. The retailer has the freedom to sell the products at a price lower than the MSRP to move the product faster or they can set it higher than the MRSP to bring in more profits if the item is selling faster than initially foreseen. The MSRP for Allround suggested retail was $5.29, according to the PharmaSim case study, “The manufacturer’s suggested retail price (MSRP) for Allround is relatively high with volume discounts ranging from 25–40%, not including promotional allowances”. Our pricing decision for the PharmaSim simulation we felt was important because consumers have alternatives to choose from and are better informed. Our initial retail price of $5.45 was an increase from the suggested retail of $5.29 to adjust with inflation rate of 3.1%, which boost sales from $355.3 million to $434 million totaling $78.7 million in sales growth. We purchased survey data to help establish the price. Consumers perceived our product being the most effective in cold relief which allowed Allstar to raise the price incrementally and consumers were still willing to purchase the product. During period 1 the

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