Misprice (verb) refers to the incorrect pricing of goods or services, typically resulting in a price that does not accurately reflect their value. This can occur due to various factors such as clerical errors, outdated pricing strategies, or market fluctuations. Mispricing can have significant implications for both sellers and buyers, impacting sales, revenue, and customer perceptions.
Misprice meaning with examples
- During the sale event, a high-tech gadget was unintentionally mispriced at twenty dollars instead of the intended two hundred. This caused a rush of customers trying to purchase the items before the error was corrected, showcasing the importance of accurate pricing in retail.
- The online store faced backlash when it was discovered that a popular book had been mispriced at a fraction of its true value. Customers placed numerous orders, leading to confusion and frustration among both buyers and sellers when the orders were subsequently canceled.
- While preparing their annual clearance sale, a local clothing store mispriced several items, leading to an unexpected increase in foot traffic. Though the mispricing was later addressed, it unintentionally boosted their popularity and drew in more customers than usual.
- In the world of finance, mispricing of stocks can have severe consequences. An investment firm mistakenly listed shares at a significantly lower rate, causing a sudden volatility in the market as traders sought to capitalize on the error, demonstrating how quickly mispricing can disrupt trading.