Which statement accurately reflects how floor pricing varies by service type?

Which statement accurately reflects how floor pricing varies by service type?

• A. The four service types share the same price range.
• B. The four service types each have a two-value floor price depending on ACV.
• C. Only the INITIAL service has two values; others have fixed pricing.
• D. All monthly services have the same two-value range.

Answer: (B)

Floor pricing is driven by both service type and contract value. It isn’t the same minimum for every service; different service types have their own minimums, and those minimums shift based on the annual contract value (ACV). In this setup, each service type has two floor-price values, chosen according to which ACV tier the customer falls into. That’s why the statement that applies is that each service type has a two-value floor price depending on ACV. This reflects how pricing floors are tiered: lower ACV bands yield one floor, higher ACV bands yield another, and this pattern holds for every service type.

Floor pricing is driven by both service type and contract value. It isn’t the same minimum for every service; different service types have their own minimums, and those minimums shift based on the annual contract value (ACV). In this setup, each service type has two floor-price values, chosen according to which ACV tier the customer falls into. That’s why the statement that applies is that each service type has a two-value floor price depending on ACV.

This reflects how pricing floors are tiered: lower ACV bands yield one floor, higher ACV bands yield another, and this pattern holds for every service type.