selling below cost

USAGE SUMMARY

"selling below cost" is correct and usable in written English. You can use it when discussing pricing strategies or business practices, particularly in contexts related to sales, marketing, or economics. For example: "The company was criticized for selling below cost to gain market share." Alternative expressions include "undercutting prices" and "pricing at a loss."

✓ Grammatically correct

News & Media

Academia

Wiki

Human-verified examples from authoritative sources

Exact Expressions

23 human-written examples

Iran's trade with China soars, and Chinese solar companies are found to be selling below cost.

The New York Times

It would make it easier to build out-of-town hypermarkets, and would scrap a rule stopping retailers from selling below cost.

The Economist

USEC accused European competitors of illegally selling below cost in the United States, called dumping, and of benefiting unfairly from government subsidies.

The New York Times

Let's just make sure we understand this, if the other guy is selling below cost, the only way I can make any sales is to price below his price.

Yale University

How in this game do I "get out of the market?" You're absolutely right, I don't want to be involved in this market if the other guy is selling below cost.

Yale University

It is no coincidence that haggling is possible in small shops, but harder in chain stores.Rules on fixed sales periods and selling below cost have come about in a similar way.

The Economist

Human-verified similar examples from authoritative sources

Similar Expressions

37 human-written examples

Mr. Zoellick also signaled that the United States was prepared to allow negotiations on antidumping rules that allow nations to retaliate against imports sold below cost.

The New York Times

These comprise safeguards against unexpected surges in an import, countervailing duties to compensate for subsidized imports and tariffs on imports sold below cost.

Forbes

"We are already taking action to tackle problem drinking, including plans to stop supermarkets selling below-cost alcohol and working to introduce a tougher licensing regime.

Independent

After all, selling below-cost to kids to incentivise adult purchase is the truest form of generosity there is. 5. You'll need a nativity scene which is ironically based on MTV's Cribs.

Vice

trading monopolies might sell below cost and thus disrupt markets.

The New York Times

Expert writing Tips

Best practice

When discussing legal or trade issues, clearly define what constitutes "cost" (e.g., production cost, market price) to avoid ambiguity in the context of "selling below cost".

Common error

Avoid using "selling below cost" when simply referring to discounts or sales. "Selling below cost" implies a sustained pricing strategy that results in a financial loss on each unit sold, not just a temporary price reduction.

Linguistic Context

The phrase "selling below cost" functions as a gerund phrase, often used as a noun in a sentence. It describes an action or a business strategy, typically discussed in contexts related to economics, trade, and business practices. Ludwig AI shows that it appears often as the subject of a sentence or part of a longer noun phrase.

Expression frequency: Common

Frequent in

News & Media

52%

Academia

28%

Wiki

13%

Less common in

Formal & Business

7%

Ludwig's WRAP-UP

In summary, "selling below cost" describes a business strategy of pricing products or services lower than their cost to produce or acquire. Ludwig AI's analysis indicates the phrase is grammatically correct and common, appearing frequently in news, academic, and wiki contexts. The phrase is typically used to discuss business and economic practices, especially concerning pricing strategies and trade regulations. It's important to understand the nuances of "selling below cost" and differentiating it from similar terms like "dumping goods" or "promotional pricing". Understanding the appropriate register and potential pitfalls are crucial for effective communication.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

below-cost selling

Uses a hyphenated form to describe the action of selling at less than the cost.

pricing below cost

Focuses on the act of setting a price, rather than the act of selling.

selling at a loss

Emphasizes the financial outcome of the sale, where the revenue is less than the cost.

dumping goods

Specifically refers to selling goods internationally at a price lower than their domestic market price or cost of production.

loss leader pricing

Highlights the strategy of using a product sold at a loss to attract customers.

predatory pricing

Describes a strategy where prices are set low to eliminate competition.

undercutting prices

Focuses on setting prices lower than competitors.

selling under value

Suggests the item is being sold for less than its perceived or intrinsic value.

discounting heavily

Highlights the significant price reduction, though not necessarily below cost.

promotional pricing

Emphasizes that the lower price is temporary and for promotional purposes.

FAQs

What does "selling below cost" mean?

"Selling below cost" refers to selling a product or service at a price that is less than the cost to produce or acquire it. This strategy is often used to attract customers or gain market share, but it can also lead to financial losses.

Is "selling below cost" illegal?

The legality of "selling below cost" depends on the jurisdiction and the specific circumstances. In some regions, it may be considered predatory pricing, which is illegal if its purpose is to eliminate competition. Other times, it may be allowed for promotional purposes or to clear out excess inventory.

What are the potential consequences of "selling below cost"?

While "selling below cost" can attract customers and increase sales volume, it can also lead to significant financial losses. It may also trigger investigations from regulatory bodies if it's perceived as predatory pricing. Sustainable profitability becomes a challenge if the practice is prolonged.

What's the difference between "dumping goods" and "selling below cost"?

"Selling below cost" is a general term that refers to selling a product for less than its cost. "Dumping goods" specifically refers to exporting goods to another country at a price below the cost of production or the price in the home market, which is often considered an unfair trade practice.