Glossary
Price floor
The minimum a price proposal may go to: landed cost plus the tenant's margin floor, plus any state floor (e.g. New York's wholesale multiple, under verification).
Why it matters for reconciliation: a price proposal that ignores cost can sell below it, and the loss only appears when the books are closed. The floor puts landed cost, the margin the store chose and any state minimum into the calculation before the proposal is drafted.
Example: an agent drafts a price cut for a slow product. The landed cost of the package plus the store's margin floor sets the lowest allowed price, and if a state rule adds its own minimum, that minimum is part of the floor too. A price below the floor is not a valid proposal.
Related terms
- Landed cost
The full cost of a package into inventory: invoice unit cost at accepted quantity, freight, and any wholesale tax booked into cost (Michigan 24%). The floor for any price proposal.
- Price intelligence
Comparing your shelf prices, out-the-door, against licensed market data, your own in-store checks and the k ≥ 8 network median — never scraped menus — and drafting repricing above the floor.