Underbidding: meaning, definitions and examples
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underbidding
[ ˌʌndərˈbɪdɪŋ ]
bidding process
Underbidding refers to the practice of submitting a bid that is lower than what the competitors have offered, often in a competitive context such as auctions or contract negotiations. It can be a strategy used to secure a contract or win a bidding war, but it may also result in financial losses if the bid is too low to cover costs.
Synonyms
low bidding, lowballing, undercutting.
Examples of usage
- The contractor won the project by underbidding his rivals.
- Underbidding can lead to unsustainable projects.
- The company faced backlash for underbidding on important contracts.
Translations
Translations of the word "underbidding" in other languages:
🇵🇹 suboferta
🇮🇳 नीच बोली लगाना
🇩🇪 Unterbietung
🇮🇩 penawaran lebih rendah
🇺🇦 заниження ціни
🇵🇱 poniżająca oferta
🇯🇵 安値入札
🇫🇷 sous-enchère
🇪🇸 oferta inferior
🇹🇷 düşük teklif verme
🇰🇷 낮은 입찰
🇸🇦 عرض أقل
🇨🇿 podbízení
🇸🇰 podbívanie
🇨🇳 低报价
🇸🇮 podbijanje
🇮🇸 undirboð
🇰🇿 төмен баға ұсыну
🇬🇪 დაბალი შეთავაზება
🇦🇿 aşağı təklif
🇲🇽 oferta inferior
Etymology
The term 'underbidding' is derived from the combination of the prefix 'under-', meaning 'below' or 'less than', and the word 'bidding', which comes from the Old English 'bidde' meaning 'to offer'. The use of 'under-' in this context suggests a bid that is lower or beneath the standard or expected amount typically offered in competitive circumstances. The concept of bidding itself has historical roots in trade and commerce, where it was used to describe the act of making an offer for goods or services. As competitive markets evolved, the practice of underbidding emerged as a strategy to gain advantages over competitors. The phenomenon became more pronounced with the advent of formalized bidding processes, such as auctions and government contracts, where bidders seek to attract business by offering lower prices. Overall, underbidding represents a tactical maneuver that can have significant implications for both bidders and the overall market dynamics.