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Legal Definitions - floor price

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Definition of floor price

Definition: A floor price is the minimum price that can be charged for a product or service. It is the lowest price that a seller is willing to accept for their product or service.

Example: A company sets a floor price of $10 for their product. This means that they will not sell their product for any less than $10, even if the market price drops below that amount.

Explanation: The example illustrates how a floor price works. The company has set a minimum price that they are willing to accept for their product. This ensures that they do not sell their product at a loss and helps them maintain a certain level of profitability.

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Simple Definition

Term: FLOOR PRICE

Definition: A floor price is the lowest possible price that can be charged for a product or service. It is like a safety net that ensures that the price of a product or service does not fall below a certain level. Think of it like a minimum price that must be paid for something. For example, if a store sets a floor price of $10 for a shirt, they will not sell it for any less than $10. This helps to protect the store from losing money and ensures that the product is valued appropriately.

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