The manufacturer's suggested retail price (MSRP) is the price at which a product maker recommends that a retailer sell the item to consumers. This pricing strategy aids in industry-standard pricing and maintains brand value.
A trade allowance is a producer discount given to distributors or retailers as a promotional effort to encourage sales. Retailers pass along the discount to the consumer, which promotes higher sales volumes. Though it can reduce producer profits, this practice is widely followed in many industries.
