What is Buydown means in retail industry

[dsvasan2002]

Hi,

Could anyone explain/ define what does the term buydown means in the retail industry?

[m8internet]

Buydown is normally an American term for mortgage products

However, it can also be used to explain the down-selling of products
Let's say you are an airline and have three levels of service
Economy
Premium Economy
Business Class / 1st Class
Some Business Class customers may decide they cannot afford the flight
They could then buydown to Premium Economy
Equally, an Economy customer who cannot afford Business Class but can afford to pay a little extra could buyup to Premium Economy

The normal term for retail is to upsell
Not many retailers downsell!

[retailworld]

Deleted your second post as you don't need to post twice.

And congratulations to m8Internet for contributing 100 posts! Thank you!