A **price drop** refers to a reduction in the price of a good or service, often implemented to gain a competitive advantage or to stimulate sales. This definition is similar to that of a **price cut**, which is also a reduction in the price of a good or service, but the term "price drop" is less commonly used and may imply a more immediate or significant price reduction (as seen in source). However, both terms describe the act of lowering the price of an item.