Lowballing: meaning, definitions and examples
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lowballing
[ loʊˌbɔːlɪŋ ]
negotiation tactic
Lowballing is a negotiation tactic where one party offers a price or value that is significantly lower than what is realistically acceptable. This strategy is often used to gain a better deal in various contexts, such as sales or business negotiations.
Synonyms
cheapshot, underbid, undervalue.
Examples of usage
- They lowballed the offer to start the negotiation.
- The dealer lowballed the trade-in value of my car.
- She felt insulted by the lowballing tactics of the buyer.
Etymology
The term 'lowballing' originates from the combination of 'low', meaning below the average or customary level, and 'ball', a colloquial term often used in American English to refer to an offer or a proposal. While the exact origins of the word are not clear, it is believed to have emerged in the mid-20th century in the context of negotiations and business dealings. The practice of lowballing has been observed in various markets, particularly where bargaining is common, such as real estate, car sales, and labor negotiations. The tactic can serve to test the limits of the other party's willingness to accept less than their stated value, and while it can be effective in certain situations, it can also damage relationships if perceived as disrespectful.