undercutun·der·cut /ˌʌndəˈkʌt-ər-/ verb (past tensepst and past participlepp undercut, present participle undercutting) [transitiveT]COMMERCE to sell goods or services more cheaply than another companyOur competitors have been undercutting our prices.
The firm that expands output will always be able to reduce costs and undercut its rivals.