Setting a Product Price Floor

A "product price floor" refers to a minimum price set for a product, where the price cannot be discounted below this minimum price. If your product requires a price floor to be set, you can leverage Salesforce’s validation rule. 

 

Step 1: Create a Product Custom Field

Create a Product custom field with Currency (15, 3) type and name it “Price Floor.”

 

Step 2: Create a Quote Line Item Validation Rule

Create a Quote Line Item Validation Rule that checks if Quote Line Item.Net Sales Price < Product.Price Floor and shows an error message.

If you are using Multi-Attribute Pricing or have multiple active Price Books, one product can have different prices. In this scenario, you can use a Price Book Entry custom field (instead of a Product custom field).

 

Step 3: Assign a Price Floor for Your Products

Let’s say that one of your products’ List Price is $100 and its minimum amount to be sold at is $50, you can set this product’s Price Floor = $50 in your product catalog. That way when a Sales Rep quotes this product, the price cannot be discounted below $50. An error message will be shown on the Quote.

 

Putting it all together

In summary, a product price floor serves to establish a minimum threshold for pricing to ensure revenue stability. By leveraging Salesforce’s validation rules, you can ensure that the revenue will stay above a certain amount, while also streamlining the quoting process.