Underbid

usgb/ˌʌndərˈbɪd/
verb

To offer a lower price than what someone else has offered.

The new company underbid our current supplier, which is why we switched.
Visual representation of "underbid" - To offer a lower price than what someone else has offered

Often appears as...

  • underbid the competition
  • underbid on a contract
Definition 1 of 2
Visual representation of "underbid"
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Business Tactics

Underbid can imply a strategic move by a company to gain market share by offering lower prices.

Illustration for Business Tactics
To capture more clients, they underbid their competitor's offer.
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Risk Implications

Underbidding could lead to losses if costs are underestimated in the bid.

Illustration for Risk Implications
The contractor regretted underbidding as the project incurred unexpected expenses.
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Comparative Advantage

Underbidding usually indicates that the seller has a lower cost base or is willing to accept less profit.

Illustration for Comparative Advantage
Their ability to underbid was due to efficient production processes.
Visual representation of the word "Underbid"

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