what is MSRP of cars? We don’t have this concept in our country so please explain?
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In the US, cars are sold through a “dealership” model meaning that you don’t buy directly from the company that makes the cars. Instead you buy from a local place that specializes in selling cars from that company.
The concept of MSRP, or Manufacture’s Suggested Retail Price is part of a marketing campaign to help sell cars. It implies that there is a price that the car maker thinks the car should sell for. But the dealer will give you a lower price. So it makes the car buyer feel like they are getting a good deal at that dealership.
But the secret is no one ever pays MSRP. The car makers don’t ever expect the cars to sell at that price.
The US seems to love these well known tricks. This is way most things that we buy have prices like $14.99 instead of $15. At some point it was s psychological trick that made you think it was cheaper. The thing is, it still works. If the same product was available at stores that were next door to each other, and one sold for $14.99 at one store and $15 at the other…people would by the $14.99 one.
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