antiprice

Antiprice refers to a pricing strategy where a company deliberately sets its prices lower than its competitors. This tactic is often employed to gain market share, disrupt established players, or to attract price-sensitive customers. Antipricing is distinct from simply having competitive pricing, as it involves a conscious and aggressive reduction in prices below what might be considered sustainable for long-term profitability in a stable market.

The primary goal of antipricing is often to drive competitors out of the market or to force them to lower their own prices, potentially to unsustainable levels. This can lead to a price war, which benefits consumers in the short term through lower prices but can have negative long-term consequences for market competition and the survival of smaller businesses. Companies employing antipricing must have substantial financial resources to sustain the lower prices, as it can significantly impact their profit margins.

Examples of antipricing can be seen in various industries, such as telecommunications, airlines, and retail. A new entrant might offer significantly lower prices to attract initial customers, or an established company might use it to retaliate against a competitor’s aggressive pricing. The long-term success of an antipricing strategy depends on the company's ability to achieve economies of scale, innovate to reduce costs, or eventually raise prices once market dominance is achieved. However, regulatory bodies may intervene if antipricing is deemed to be predatory and harmful to fair competition.