MSRP
MSRP stands for manufacturer's suggested retail price, the price printed on the sell sheet and charged to players at full price. It is "suggested" because stores can legally charge whatever they want, but in practice the whole pricing chain hangs off this number. Retailer and distributor prices are calculated as percentages of MSRP, so setting it is one of the most consequential business decisions you make.
The standard calculation works forward from landed cost, which is everything it takes to get one finished copy into your warehouse: manufacturing, ocean freight, duties, and inbound handling. The rule of thumb is MSRP of at least five times landed cost. The logic: a distributor pays you around 40 percent of MSRP, so at 5x your distributor revenue is 2x landed cost, leaving enough gross margin to fund marketing, overhead, and the next print run. Many publishers aim for 5x to 6x to leave headroom.
New publishers consistently price too low. It feels safer to charge 25 dollars than 45, but a low MSRP with a normal cost structure means every distribution sale loses money, and you cannot fix it later because raising the price of an existing game is very hard. Players also read price as a quality signal within reason. A well-produced game priced far below its component weight can look suspicious rather than generous.
Check your number against the market. Find five comparable published games with similar box size, component count, and audience, and see where they land. If your 5x calculation puts you far above comparable games, that is a signal to reduce landed cost, by trimming components or increasing print run size, rather than a signal to accept an unsustainable price.
Think this through
- Who is the specific audience for this decision?
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