Underselling Meaning: Definition, Examples, and Translations

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underselling

[ˌʌndərˈselɪŋ ]

Definition

^{Context #1 | Verb}

business

To sell something for a price that is lower than its actual value in order to attract customers or compete with other sellers. Underselling can also refer to promoting or presenting something in a way that downplays its true worth.

Synonyms

discount, undercut, underprice.

Which Synonym Should You Choose?

Word	Description / Examples
underselling	When a product or service is sold for less money than it is worth, often due to misjudgment or poor marketing. This term can have a negative connotation. The artist felt they were underselling their artwork. If you continue underselling your skills, you might never get what you're worth.
undercut	When deliberately setting prices lower than a competitor’s to gain a competitive advantage. Often used in business and sales strategies. It can carry a slightly negative connotation implying aggressive competition. The new café is undercutting all the local coffee shops. He undercut his rivals to win more business contracts.
underprice	When setting the price of a product lower than its perceived value or market rate. Common in real estate, auctions, and sales. Often suggests undervaluation and can have a negative connotation. They underpriced their house to sell it quickly. By underpricing their products, they risked losing profit.
discount	When offering reduced prices on products or services for a limited time or as part of a promotion. Common in retail and marketing. The store is offering a 20% discount on all items this weekend. They applied a discount to clear out old inventory.

Examples of usage

Many companies use underselling as a strategy to gain market share.
The store is underselling its products to clear out inventory.

Translations

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

Interesting Facts

Economics

Underselling can create price wars among competitors, where businesses continuously lower prices to gain market share.
It can harm a brand's perceived value, as constant underselling may lead customers to question the quality of the product.
Strategically used, it can help companies penetrate new markets, drawing customers away from established competitors.

Psychology

Customers may feel more satisfied when finding a deal that appears cheaper than expected, triggering positive emotions.
However, underselling can lead to 'buyer’s remorse' if customers later realize the true value of what they purchased is much higher.
People often associate lower prices with lower quality, creating a mental barrier for products that are undersold.

Marketing

In promotional strategies, underselling is often used during initial launches to draw attention and stimulate early interest.
Limited-time offers that undersell a product can create urgency among consumers, encouraging immediate purchases.
Many startups adopt an underselling strategy to build a loyal customer base before adjusting prices to reflect full value.

Pop Culture

In movies and TV shows, characters often undergo a transformation when they realize they have been underselling themselves or their talents.
Songs and books often explore themes of undervaluation and finding one's worth, resonating with broader audiences about reaching potential.

Origin of 'underselling'

Main points about word origin

The word 'undersell' combines 'under,' meaning below, and 'sell,' which derives from Old English 'sellan' meaning to give away or hand over.
The concept has been used in commerce since at least the 19th century, illustrating pricing strategies in selling.
The practice arose during economic downturns, where sellers would lower prices to attract buyers.

The term 'underselling' originated in the early 19th century, combining the prefix 'under-' meaning 'below or less than' with 'selling'. It was initially used in a literal sense to describe selling items at a price lower than the competition. Over time, the concept evolved to include not just pricing but also marketing and presentation strategies aimed at devaluing a product or service to attract customers. Underselling continues to be a common practice in business and marketing today.