The term 'undercharged' describes the situation where a price, fee, or amount requested or billed is less than what is appropriately or accurately due. This often stems from an error in calculation, a misjudgment of the service provided, or a deliberate offer below the market value. The consequence can lead to financial loss for the seller and a potential benefit for the buyer. In business contexts, undercharging can erode profit margins and impact future pricing strategies. Legal implications may arise if the undercharging is significant or intentional. It contrasts with situations where an overcharge occurs or the correct amount is applied.
Undercharged meaning with examples
- The cashier undercharged me for the groceries, missing several items. I didn't notice until I got home, and the store policy doesn't allow for adjustments after the fact. Now I am not sure if I should return the whole lot! It's an oversight that, although advantageous for me, creates a potential loss for the store.
- Due to a software glitch, the consultant's invoice was undercharged by almost $1,000. This error was quickly identified, and a corrected invoice was promptly sent. The client, understanding the mistake, readily paid the remaining balance to reflect the agreed-upon fee for the consulting work.
- The airline was undercharged due to the baggage fees, causing a financial issue for their profits. Since it was an online booking, the baggage fee was omitted and the airline lost money. The airline then had to send a message to their customers to pay the remainder of the ticket price.
- After a brief negotiation, the artist undercharged the client for the custom portrait. However, the artist was extremely happy that the painting was paid for promptly and on time. This was an act of generosity, intending to build a long-term client relationship with the hope of future commissions.
- The contractor undercharged for the renovations because he underestimated the amount of materials required. The contractor needed to revisit the original estimates to avoid losing money. He learned a valuable lesson in assessing project costs and making sure that the project would make him money.