Glossary
Price Floor
Definition
A price floor is the lowest price you will accept for a job - the number below which the work loses money once real costs are counted.
Your floor comes straight from your costbook: labor, chemical, fuel, overhead, and a minimum margin. Any bid under it means you are paying to do the customer’s job. Knowing the floor lets you walk away from work that looks busy but drains the business.
A floor is not your asking price; it is your line in the sand during negotiation. The gap between your floor and your quoted price is room to discount without going broke, and operators who know their floor stop underpricing out of fear.