Maria is partially correct. The MSRP is a "Suggested" price. No manufacturer can demand you use it. Technically once the merchandise is paid for I don't care if they push it off the end of the Santa Monica pier.

Realities many times are different though. As a manufacturer I can't tell you what price to sell a product for, I can only tell you what you'll pay for it. But there is a caveat. You'll find many manufacturers if a customer is creating pricing problems for them will all of a sudden have a lot of backorders to that company.

Pricing is always the most difficult thing for newbies to deal with. Too many times I see them spending years only trading dollars. It's a pretty safe bet that unless a product has unusually high margins you only have so much wiggle room because yours and your competitors costs are going to be very similar unless he's grown to the point where he has a payroll and you aren't there yet.
Good luck
Denny