floor price: meaning, definition, pronunciation and examples
B2Formal / Business / Financial
Quick answer
What does “floor price” mean?
The lowest permitted or possible price for a commodity, asset, or service, often set by regulation, agreement, or market conditions to prevent prices from falling below a certain level.
Audio
Pronunciation
Definition
Meaning and Definition
The lowest permitted or possible price for a commodity, asset, or service, often set by regulation, agreement, or market conditions to prevent prices from falling below a certain level.
A figurative minimum threshold or baseline value in various contexts, such as the lowest acceptable offer in a negotiation, the minimum bid in an auction, or a psychological price point that sellers or producers are unwilling to go below.
Dialectal Variation
British vs American Usage
Differences
No significant difference in meaning. More common in American financial journalism. In UK contexts, 'minimum price' or 'reserve price' (in auctions) may be used more frequently in non-financial registers.
Connotations
In both varieties, it carries connotations of market intervention, price support mechanisms, or producer protection.
Frequency
High frequency in financial, commodity trading, and agricultural policy contexts. Lower frequency in general everyday speech.
Grammar
How to Use “floor price” in a Sentence
[Subject: authority/agreement] + set/established + [floor price] + for + [commodity][Commodity] + trades/falls to + [the floor price][floor price] + is + [amount/figure][floor price] + of + [amount] + per + [unit]Vocabulary
Collocations
Examples
Examples of “floor price” in a Sentence
noun
British English
- The government's floor price for wheat has been criticised by free-market economists.
- What's the floor price you'd accept for your flat?
American English
- The producers' union is demanding a higher floor price for milk.
- The auction's floor price was set at $10,000.
Usage
Meaning in Context
Business
The board agreed to a floor price for the new product line to protect brand value.
Academic
The study analysed the impact of an agricultural floor price on smallholder farmers' incomes.
Everyday
I won't sell my car for less than £2,000; that's my absolute floor price.
Technical
The algorithm is programmed to execute buy orders if the asset reaches its predetermined floor price.
Vocabulary
Synonyms of “floor price”
Strong
Neutral
Weak
Vocabulary
Antonyms of “floor price”
Watch out
Common Mistakes When Using “floor price”
- Using 'floor price' to mean 'cheap price' (it's about a minimum limit, not necessarily a low cost).
- Confusing 'floor price' with 'ground price' or 'land price'.
- Using it as a verb (e.g., 'to floor price something' is incorrect).
FAQ
Frequently Asked Questions
Yes, in most contexts they are synonymous. 'Floor price' is more specific to formal, economic, or financial contexts, while 'minimum price' is more general.
Yes, colloquially. An individual can set a personal 'floor price' as the lowest amount they are willing to accept when selling an item or their labour.
The direct opposite is a 'ceiling price' or 'price ceiling', which is a maximum price set above which something cannot be sold.
No. A floor price sets a minimum asking price. If no buyer is willing to meet that price, the item remains unsold (common in auctions with a 'reserve' or floor price).
The lowest permitted or possible price for a commodity, asset, or service, often set by regulation, agreement, or market conditions to prevent prices from falling below a certain level.
Floor price is usually formal / business / financial in register.
Floor price: in British English it is pronounced /ˈflɔː praɪs/, and in American English it is pronounced /ˈflɔr praɪs/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “to hit the floor (price)”
- “the price has found its floor”
- “to put a floor under prices”
Learning
Memory Aids
Mnemonic
Imagine a physical floor in a room. Just as you cannot fall through the floor, a 'floor price' is the level below which the price cannot (or should not) fall.
Conceptual Metaphor
PRICE IS A PHYSICAL OBJECT MOVING VERTICALLY. A FLOOR is a lower boundary preventing downward movement.
Practice
Quiz
In which context is the term 'floor price' LEAST likely to be used accurately?