A minimum price permitted under a defined policy, product, segment or approval boundary. It is a boundary for the commercial decision, rather than an automatic statement of the company’s costs or profitability.
An example
The approved annual floor for a particular package is S$95,000. A S$90,000 request for the same scope needs the designated exception review. A smaller package may have a different floor and should be assessed separately.
What to check
A floor is policy-specific. Confirm whether it applies by item, bundle, period or total deal and whether other concessions count.
In practice
Confirm whether the floor applies to a line item, the whole deal or a customer segment, and whether credits or free services affect the calculation. Crossing the boundary should trigger the right decision, not an unexplained error.