Definition: Price Cut - Explained



The price cut is a type of price lowering which is specifically intended to remove competiion by the business issuing the cuts. This may involve a sequence of competitive price cuts that alternate between similar businesses and products and here the consumer can potentially experience substantial drops in pricing.


Tips

When price cuts are suspected, search other retailers that have the same product lines. But at the same time beware of the advertised "price cut" that is actually intead a veiled reduction or markdown that is intended only to hook buyer interest.

Businesses should use the terms with discretion and not simply lump them synonymously, regardless of any current practices.








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