Also found in: Dictionary, Thesaurus, Medical, Encyclopedia.
To deliberately charge a lower price for a good or service than a competitor. For example, if a grocery store sells apples for $2 per pound, a competitor may undersell by charging only $1.50 per pound. Underselling may result in losses in the short term (depending on how much of a discount one offers), but it may build market share.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved