price cutting

Thân thiện

The store is using price cutting to sell last season's clothing.

Definition

Noun: - The act of reducing the selling price of goods or services below the standard, usual, or previously advertised price. It is a competitive business strategy often used to attract customers, increase sales volume, or clear out inventory.

Usage

• Price cutting is typically used as a singular noun to describe the general strategy or a specific instance of lowering prices.
• It often occurs in competitive markets, during sales promotions, or when a company wants to gain market share.

Examples

• The fierce competition led to widespread price cutting among electronics retailers.
• The supermarket's aggressive price cutting on staple items drew in many budget-conscious shoppers.
• Analysts warned that prolonged price cutting could harm the industry's overall profitability.

Advanced Usage

• As a competitive tactic: Price cutting can be a double-edged sword; while it may boost short-term sales, it can also trigger price wars and reduce profit margins for all companies involved.
• In economic contexts: Sustained price cutting in a sector can be a sign of deflationary pressures or excessive competition.

Variants and Related Words

• Price cut (noun): A specific instance or the result of price cutting.
  • The store announced a significant price cut on all winter clothing.
• To cut prices (verb phrase): The action of reducing prices.
  • The new competitor forced established brands to cut prices.

Synonyms

• Price reduction
• Discounting
• Markdown
• Underpricing (specifically setting prices lower than competitors)

Antonyms

• Price increase
• Price hike
• Markup

Related Phrases and Concepts

• Price war: A situation of intense competition where multiple companies repeatedly engage in price cutting.
  • The airline industry entered a brutal price war.
• Loss leader: An item sold at a very low price (often at a loss) to attract customers who will then buy other, more profitable items.
  • The console was used as a loss leader, with profits made on games and accessories.

Học thuật

Noun

1. cutting the price of merchandise to one lower than the usual or advertised price

Từ đồng nghĩa

• price cut