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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MSRP is generally meant to be respected, but its not strictly enforced, but its generally respected. Its the “suggested” price of an item to the consumer. The specific product isn’t that important.
If a manufacturer sees a vendor not selling at MSRP, they may contact the vendor and ask why, they may even decline to provide them with further products until they respect the MSRP, or they may not give a shit. This can be both below or above the MSRP. Both are a potential problem. Yes, places may sell below MSRP.
Additionally, in some rare cases, items in extremely high demand and low supply may have an MSRP that many vendors don’t respect as it is much too low for the supply and demand, and may raise prices to capitalize on that. Manufacturers may or may not care but generally aren’t happy about it and it may cause tension. When a manufacturer sets an MSRP, they are trying to signal to vendors and consumers the price they should pay and they want to keep the consumer/end user happy.
There’s also some unique cases, such as maybe a supplier in a geographic area that is expensive to get the product to (like say a remote island), they may need to charge above MSRP due to cost to get products there, and manufacturers know that and understand it.
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