We aim to be as transparent as possible when it comes to all things home décor and furniture—whether that means giving you a first home buying guide or being open and honest about pricing.

We know that furniture pricing can get confusing, and we want you to be equipped with all the information you need before you invest in your home. We’re defining a few of the terms you may come across.

MSRP [Manufacturer’s Suggested Retail Price]

First let’s take MSRP: manufacturer’s suggested retail price. This is the price that’s determined by the manufacturer as a selling price. You’ll often see these words on a furniture tag followed by “our price” which is a discounted price retailers take from the MSRP and put as their selling price.

Sometimes, when advertising a sale, retailers will say a product is 30-40% off, but what they’re talking about is 30% off the MSRP, not the price that they sell it for every day.

In other words, practice caution when you see a big discount like 40% off. 10% off a reasonable every day price could be a better deal than 40% off an unrealistic “compare at price.”

MAP [Minimum Advertised Price]

Then we have MAP pricing which means minimum advertised price. This price is set by the manufacturer and determines what you may advertise for the price.

Retailers need to follow these rules and be sure their advertising is in line with the manufacturer’s policy.

MRP [Manufacturer’s Retail Price]

Finally, we have MRP (manufacturer’s retail price) which is set by the manufacturers and us as retailers are obligated to charge that price. Retailers risk losing these exclusive lines if they violate the policy.

We love this option because it levels the playing field and allows brick and mortars to compete in an online world. 

With MRP, customers will find the same price everywhere so they can choose to purchase from the retailer they like and trust. 

Conclusion

So, what does this mean for you?

Be cautious of retailers who advertise sales with MSRP and do thorough research before you invest money into your home. Here at Circle, we think it’s important for customers to know what the selling price is on an everyday basis, so when a sale is advertised you’ll know that it’s legitimately discounted from that price. 

We hope this has helped unveil the mystery of furniture pricing. As always, we welcome questions and invite you to come into a showroom to explore our furniture and chat with one of our knowledgeable design consultants.