Definition
Price wars refer to the situation where companies compete by lowering their prices to gain market share. The lower prices often lead to greater profits within the industry and can be a really profitable decision.
In the room
How the word shows up in a real conversation.
In a Monday review, someone writes Price war on the board and restates it: “Competitive situation where companies repeatedly lower prices to gain market share.” The next move is a test, a cut, or a double-down — not another debate about the word.
Common mistake
Using Price war as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Price elasticity
Measure of how sensitive demand is to changes in price.
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Price floor
Minimum price that can be charged for a product or service.
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Price point
Specific price at which a product or service is offered to customers.
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Price skimming
Pricing strategy that starts with high prices and gradually lowers them.
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