limit pricing

Definition

The act of setting a selling price just below the level at which other sellers would find it profitable to enter a market.

Use limit pricing in a sentence

You should try and follow a good limit pricing technique so that you know you will always be getting enough.

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They set the limit pricing so they would be able to get interested buyers, but also maximizes their profits on the deal.

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I became confused after realizing that we only sold our products up to a certain price, but my boss explained that we could produce them cheaper than anyone else and could control the market in the long term through limit pricing.

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limit price limit up