What does underbid mean?
Underbid is a verb meaning to bid less than someone else, most often another bidder in an auction or a competing contractor in a tender. It can also mean to undercut a rival by offering a lower price for goods or work. The word is transitive when the person or organization being beaten is named and intransitive in constructions such as "underbid for the contract." In business and legal contexts, underbidding can be strategically useful, although pricing work too low may raise concerns about whether it can be completed profitably. The expression also has a figurative sense: making a less attractive offer than a rival when buying, selling, or competing for an opportunity. Underbid is relatively uncommon compared with bid itself, but it precisely identifies the competitive act of offering less than someone else. Its historical formation is transparent: the prefix under- was joined to bid, whose modern verb descends from Old English biddan.
verbTo bid less than another bidder or competitor. It can also mean to undercut a rival by offering a lower price.
- To bid less than another bidder or competitor, especially in an auction, contract tender, or other price-based competition.
- To undercut a rival by offering a lower price for goods, services, or a commercial opportunity.
"The contractor underbid the rival by $20,000 and secured the renovation contract."
"The contractor underbid the rival by $20,000 and secured the renovation contract."
"A bidder who underbids too conservatively may lose the item despite showing interest."
Underbid is the art of naming a lower number while still aiming to come out on top.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does underbid come from?
Underbid was formed in English from the prefix under- and the verb bid. The word bid descends from Old English biddan, meaning to ask, request, or command. Related English formations include outbid, overbid, and rebid, all built on the same verbal element.
Related word forms
How underbid is actually used
The word is neutral in register but most common in business, legal, procurement, and auction contexts. It is normally transitive when the competitor is named, as in "underbid the competition," and may also be used intransitively, as in "underbid for the contract."