Undersell

To offer goods or services at a lower price than (a competitor) or than is considered their true or fair value. This can be a strategic business practice aimed at attracting customers by providing more competitive prices. However, it can also indicate a lack of confidence in the product's quality or value proposition, or reflect a desperation to move inventory. Furthermore, it could inadvertently lower the perceived value of the product or service in the marketplace, potentially leading to a price war with competitors. Often associated with a short-term gain and potentially a long-term loss, in terms of profits and brand image. It can affect the entire market. It can also pertain to selling yourself and your abilities in job interviews, etc.

Undersell meaning with examples

• The new coffee shop decided to undersell its competitor across the street, hoping to lure in more customers. Their prices were notably lower, with a focus on affordability. This strategy proved effective initially, resulting in a surge in early customers, while the other café's sales dipped slightly as people flocked to the value offerings.
• During the economic downturn, several retailers began to undersell their competitors in a desperate attempt to clear out excess inventory and stay afloat. These discounted items sold out quickly. However, this resulted in a loss of revenue for them, and it also made customers question the product’s true quality because of the low prices.
• The marketing team feared that emphasizing the budget-friendly aspects of the luxury car would inadvertently undersell the car's superior craftsmanship and performance features. By not highlighting all the value it offered, they risked creating the wrong brand image with people who would be considering its purchase.
• In the job interview, Sarah was advised not to undersell her previous accomplishments; she should present herself as capable and confident, rather than downplaying her strengths. She did great in the interview, and her offer was higher than she expected.