Definition
Price floors, or other restrictions of supply, can be protection for producers in the agricultural & labor markets. This will ensure that they are not losing money to cheap prices.
In the room
How the word shows up in a real conversation.
In a Monday review, someone writes Price floor on the board and restates it: “Minimum price that can be charged for a product or service.” The next move is a test, a cut, or a double-down — not another debate about the word.
Common mistake
Using Price floor as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Price elasticity
Measure of how sensitive demand is to changes in price.
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Price point
Specific price at which a product or service is offered to customers.
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Price skimming
Pricing strategy that starts with high prices and gradually lowers them.
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Price war
Competitive situation where companies repeatedly lower prices to gain market share.
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