Underbid Meaning: Definition, Examples, and Translations

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underbid

[ˌʌndəˈbɪd ]

Definitions

^{Context #1 | Verb}

business

To submit a bid lower than another bid in order to win a contract or project. Underbidding can lead to a decrease in quality or profit margin.

Synonyms

lowball, underprice, undersell.

Which Synonym Should You Choose?

Word	Description / Examples
underbid	Employed frequently in the context of auctions, tenders, or competitive bidding situations where someone offers a lower price than the competitors. In order to win the contract, we had to underbid our competitors. They decided to underbid on the project to ensure they were awarded the work.
underprice	Used in marketing and sales contexts when a product or service is sold at a price lower than its perceived value or market price. The company underpriced its new line of smartphones to attract more customers. She realized she had underpriced her handcrafted items when they sold out immediately.
lowball	Commonly used in negotiations or bargaining scenarios, sometimes with a connotation of being unfair or deceptive by offering a significantly lower price than what is fair. He tried to lowball the seller by offering half of the asking price. Be careful not to lowball; you don’t want to offend the other party.
undersell	Typically used in commerce when someone sells a product or service at a lower price compared to competitors, often to gain a market advantage. They decided to undersell their competitors to gain a larger market share. Local stores often find it hard to compete with big chains that can afford to undersell them.

Examples of usage

He underbid the competition to win the project.
The company underbid on the contract and ended up losing money.
If you consistently underbid, clients may question the quality of your work.

^{Context #2 | Verb}

auction

To offer a lower price than the current bid in an auction. Underbidding can result in winning an item for less than its value.

Synonyms

outbid, undershoot.

Which Synonym Should You Choose?

Word	Description / Examples
underbid	Use 'underbid' when referring to submitting a bid that is lower than someone else's bid, often in auctions or competitive bidding situations. He decided to underbid his competitors to secure the construction contract. The buyer underbid and lost the auction.
outbid	Use 'outbid' when someone offers more money than others in a bidding situation, usually to win an item or contract. She outbid everyone to win the rare painting. If you really want that car, be prepared to outbid other interested buyers.
undershoot	Use 'undershoot' in contexts where something falls short of a target or expected value, commonly seen in financial, project management, or performance metrics. The company's sales undershot their quarterly targets. He undershot his calorie goal for the day.

Word

Description / Examples

underbid

Use 'underbid' when referring to submitting a bid that is lower than someone else's bid, often in auctions or competitive bidding situations.

He decided to underbid his competitors to secure the construction contract.
The buyer underbid and lost the auction.

outbid

Use 'outbid' when someone offers more money than others in a bidding situation, usually to win an item or contract.

She outbid everyone to win the rare painting.
If you really want that car, be prepared to outbid other interested buyers.

undershoot

Use 'undershoot' in contexts where something falls short of a target or expected value, commonly seen in financial, project management, or performance metrics.

The company's sales undershot their quarterly targets.
He undershot his calorie goal for the day.

Examples of usage

She underbid at the auction and got the painting for a bargain.
Don't be afraid to underbid at the auction, you might get lucky.

Translations

To see the translation, please select a language from the options available.

Interesting Facts

Economics

Underbidding can result in lower financial returns for sellers when they receive less than market value.
In competitive industries, companies may underbid to win contracts, hoping to make up the loss later through volume or efficiency.
Strategic underbidding can affect market prices, as competitors may need to lower their prices to remain attractive.

Pop Culture

In auction-related movies and shows, characters often leverage underbidding as a tactic to acquire an item at a bargain.
Television shows on real estate frequently showcase the concept of underbidding to reflect competitive market strategies.
The concept appears in various games where players must decide on the right amount to bid to win, illustrating the principles of underbidding.

Law and Ethics

In some sectors, particularly construction, underbidding may prompt discussions about ethical practices among contractors.
Legal ramifications can arise in bid rigging cases when companies cooperate to manipulate bid prices unfairly.
Some regulations exist to prevent underbidding that may lead to unsafe practices, especially in public contracts.

Psychology

Research shows that underbidders may feel anxious or uncertain about value perception, impacting their price offerings.
This behavior can stem from an innate desire to save money or may reflect a lack of confidence in one's negotiation skills.
Bidders often gauge competition psychologically, influencing their decision to underbid based on perceived risks.

Origin of 'underbid'

Main points about word origin

The word 'underbid' combines 'under' meaning below and 'bid' which refers to an offer, especially in auctions.
It has been used in English since the late 19th century, originally connected to bidding in auctions.
Related words include 'bid' meaning to offer a price and 'overbid', which is to offer more than necessary.

The term 'underbid' originated from the combination of 'under' meaning below or less than and 'bid' referring to an offer or proposal. It is commonly used in business and auction contexts to describe the act of bidding lower than others to secure a contract or win an item at a lower price.