Suggested Retail Price

The Suggested Retail Price of a CD or vinyl album is the price a Distributor “suggests” its retailers use when selling the music to an end consumer. As the name implies, businesses are not required to sell the music at the Suggested Retail Price, though contract terms nearly always bind the retailer to a minimum price. Record companies have traditionally used Suggested Retail Price to calculate the Royalty Base Price for artist royalties, though wholesale price (PPD) is used more often today.