Alahinnat

Alahinnat is a Finnish term that translates to "underpricing" or "selling below cost." It refers to the practice of selling goods or services at a price that is lower than their actual cost of production or acquisition. This can be a deliberate strategy employed by businesses for various reasons, or it can occur unintentionally due to miscalculation or market pressures.

Businesses might engage in alahinnat to quickly move excess inventory, gain market share, or attract new customers. In some cases, it can be a temporary promotional tactic. However, sustained alahinnat can be detrimental to a company's profitability and long-term viability, as it erodes profit margins.

In competitive markets, alahinnat can also be used by larger companies to drive smaller competitors out of business, a practice sometimes referred to as predatory pricing. However, proving predatory pricing legally can be challenging. Consumers generally benefit from alahinnat in the short term due to lower prices. The term is often used in discussions related to retail, wholesale, and manufacturing industries.