LexiconChannels
Channel floor test
اختبار الحد الأدنى للقناة
Definition
The channel floor test is the rule that decides whether an order type is acceptable: commission, discount, and payment-and-packaging percentages together must not exceed gross margin minus the group's contribution floor. When a platform changes its terms, this line, not the revenue line, decides the response; an order type that fails is repriced, redesigned or stopped, never grown.
In plain words
A rule that answers: after the platform's cut, is this kind of order worth taking?
Also searched as
- floor test
- channel floor
- contribution floor test
- delivery commission test
- اختبار الحد الأدنى للقناة
Formula
c% + d% + p% ≤ GM% − Floor%
Variables
- c%, d%, p%
- commission, brand-funded discount, payment and packaging
- GM%
- gross margin
- Floor%
- group contribution floor, set by the board
Canonical thresholds
| Threshold | Verdict |
|---|---|
| Commission % + Discount % + Payment and packaging % ≤ Gross margin % − Group contribution floor % | Order acceptable; if it fails: reprice, redesign or stop, never grow |
Source: Doctrine §7 · Channel contribution · Playbook §2 · Gate 7: Channels and delivery economics at scale
Example
Illustrative example · hypothetical figures
With the Doctrine calculator's example inputs: 20% + 5% + 4% = 29%, against 62% − 25% = 37%. The order passes, with 8 points to spare.
Where it is used
In the Doctrine and the Playbook
In the Channel Ledger
- Ledger §4 · Commission Headroom and the floor test · The definition
- Ledger §4 · Commission Headroom and the floor test · When to renegotiate, reprice or reduce exposure
In Beneath Marketing
Related terms
How to cite this definition
Alhajj, S. (2026). “Channel floor test”. In The Revenue Engineering Lexicon, version 1.0. Riyadh. https://seiflden.com/lexicon/channel-floor-test/