Eli5 How does supply chain and MSRP work?

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How does MSRP work for things such as video games and video game consoles? Are stores supposed to sell items at the MSRP? Do stores buy these items from the manufacturer below MSRP and then make a profit when they are sold at MSRP? What happens when the manufacturer wants the price to go down how are stores made aware of this?

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Anonymous 0 Comments

When I worked for Target they paid 37 for a 59.99 game. They’d end up clearancing them out for 90 percent off after a while and you could scoop them for pennies on the dollar. If they wanted to sell the games for 38 then EA or Activision wouldn’t come after them, they’ve been paid for their services.

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