List price

A list price is the quoted or printed price of a product or service. List prices are stated in a seller's catalogs and sales brochures. The intent of publishing a list price is to stabilize the prices charged by retailers for a manufacturer's products. It is the highest price that a customer can expect to pay for a product; net of various discounts, the actual amount paid may be substantially lower.

A seller calculates the amount of its discounts from the list price. For example, a company is selling a purple widget for $100, and offers a 10% discount if the buyer acquires at least five of the widgets. The amount of the discount is calculated as the $100 list price, multiplied by 90% and five units, which results in a net price of $450, where the volume discount is $50.

The list price is sometimes known as the manufacturer's suggested retail price, or MSRP.

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