What is a margin floor and why do I need one for my boutique sale?

A margin floor is a single number — your minimum acceptable blended margin across all summer inventory — written as a commitment to yourself. For most boutiques running keystone markup, the typical target range is 40–50%. You write it as a sentence: 'My summer 2026 blended margin will not drop below X percent.'

Without this number posted where you can see it daily, every slow Saturday becomes an excuse to go a little deeper on discounts. The short-term relief of clearing a few more pieces feels like a win, but by August you realize you've eroded the cash you needed for fall orders. A posted margin floor interrupts that spiral.

When a staff member asks about offering a deeper discount, when your gut screams to slash prices further, you check the number first. If you're already at your floor, the answer is no. Print it, tape it where you'll see it, and treat it as a promise to your future self and your fall buying power.