The interviewer would like to know that you understand the basics of pricing when it comes to wholesale and manufacturer markups. This knowledge will help you to understand how discounting works when it comes to negotiating with your customers. In this industry, strong negotiation skills can be the key to your success. Assure the interviewer that you are familiar with a variety of pricing practices. Be sure to mention any business classes you may have taken as well.
"I learned a bit about competitive pricing, markups, and successful price-driven promotions when I was taking my business degree. I understand that most companies seek a markup of at least 60 points and can discount from there if they are overstocked or need room for negotiations."
"I am new to retail pricing, and this industry; however, I am great with math calculations as well as negotiations, so I am confident in my ability to pick up the idea of MSRP."