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Absolute-Minimum Pricing
Definition
The lowest allowable retail price at which a product can be sold, regardless of promotional depth, funding source, or channel. Absolute-minimum pricing establishes a hard price floor to protect brand equity, margins, and retailer relationships.
How It's Calculated
Example
A beverage brand sets an absolute-minimum price of $1.99 for a single-serve SKU. Even during a heavily trade-funded promotion, retailers may not price the product below $1.99, ensuring margin protection and price consistency across accounts.
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