Floor Price Rule & Product Pricing Interaction

Floor Price Rule & Product Pricing Interaction

Set Up Floor Price to Control Selling Price

Multiple pricing adjustments such as discounts and buydowns can significantly reduce item prices and impact overall revenue. To prevent excessive price reductions, the Floor Price Rule allows retailers to define a minimum selling threshold.
The Floor Price represents the lowest price at which a product can be sold, even after applying discounts or buydowns. This ensures profitability by preventing the final selling price from dropping below a defined limit.
This KB guides you through setting up the Floor Price for your FTx Commerce online store using configurable attributes such as Margin % or Markup %.

1. Floor Price Setup from Control Center

The Floor Price can be enabled from the Control Center under the POS Flags.

Follow the below steps to enable the Floor Price and Set up percentage for Margin or Markup: 

  1. Step 1: Log into Control Center
  2. Step 2: Click Go to Point of Sale → Maintenance
  3. Step 3: Click Taxes → POS Flag

1.1 Floor Price Setup

Floor Price can be set using Margin or Markup along with the percentage value to set up the minimum selling price of the products automatically.
  1. Margin means the system will make sure the product is not sold below the required profit level.
  2. Markup means the system will add a minimum price on top of the product cost.

Figure 1.1.1 Setting Up Floor Price %- Margine/Markup

Margin %: Defines profit as a percentage of the final selling price.
Formula: Margin (%) = [(Price - Cost) / Price] * 100
Floor Price is calculated as:
Floor Price = Cost / (1 - Margin (%) / 100)
Markup %: Defines profit as a percentage of the cost price.
Formula: Markup (%) = ((Price - Cost) / Cost) * 100
Floor Price is calculated as:
Floor Price = Cost * (1 + Markup (%) / 100)

Note: Suppose the Floor Price is enabled but by chance if Floor Price % = 0, then no Floor Price rule applies.

Once the value is configured, the POS Flag with Floor Price setup is automatically applied to the associated department, and subsequently to all products assigned to that department.

1.2 Override POS Flag Options

Floor Price can be controlled at different levels. This gives you more flexibility if different products or locations need different pricing rules.

1.2.1 POS Flags: Override at Location

Manage Floor Price Locations: Customize the floor price with an override at specified locations.
Retailers can also set a different Floor Price for a specific location under the POS Flags if want to make the changes for minimum selling price for the specific location(s).
This helps apply location-based pricing rules where required.

Figure 1.2.1-1 "Manage Floor Price Location"

1.2.2 Product-level Override

1. Inherit from Department (Default)
Product follows the Floor Price rule assigned to its department via POS Flag.

Figure 1.2.2-1 "Manage Floor Price Location"

2. POS Flag – Location Level
Set a different Floor Price for a product at a specific location (Ex. if no floor price rule on product).

Figure 1.2.2-2 "POS Flag Override-Location"

1.2.3 Department – Location Override

Manage POS Flag Locations: Customize POS Flag assignment with an override at specified locations
If a department has a location-specific Floor Price, it applies to all products under that department for that location.

Figure 1.2.3 Dept-Location POS Flag override
Notes
Note: If no product-level or location-level overrides are set, the system applies the default POS Flag, ensuring all products follow a Floor Price rule. This ensures that all products still follow a Floor Price rule even without additional configuration.

2. FTx Commerce Site/App: Item Price Visibility

When a product has an active Floor Price rule, the final price is calculated only after discounts and pricing rules are applied. To avoid showing different prices as per floor price calculation, the system hides the item price in some areas until the final price is calculated.

Figure 2.1 Hiding Item Price

Hiding Price on listing pages (card view) when floor price rule is applied
In this case, the price will not appear on the product listing page such as category pages, search results, cart drawer, or header cart. Instead, the customer will see a message such as “Pricing at cart” or “Final price at cart” for slider UI.
Figure 2.1 Hiding item-level price in Cart Slider (Web UI)

The correct price will always be shown on the Product Details page and the Cart page, where the final calculation takes place. This ensures customers always see the correct price before completing the order.
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Note: Regardless of the 'Show discounted price on product listing (card view)' flag is enabled, the floor price rule applicable item price will always be hidden on the listing page UI.