When faced with these problems, retailers generally shutter weaker stores and cut costs. A well-articulated penetration pricing strategy will help you break into an already established product category and gain traction.
Eugene Kharybin , Pricing Analyst at Competera. Penetration pricing entails setting a reduced price at the beginning, to increase market share.
Penetration pricing is a marketing strategy used by businesses to attract customers to a new product or service. Penetration pricing includes offering a low price for a new product or service during its initial offering.
Penetration pricing is a common strategy often used for new company or product launches. The intent is to attract customers and generate increased sales volumes by establishing a relatively low price point for the industry or product.
Go deep with low prices and gain new customers, but be careful that you don't lose profits. Penetration pricing can bring new customers into your store, increasing market share and building customer loyalty.
Penetration pricing is one of two contrasting but attention-grabbing techniques for introducing new products or services to a market. In penetration pricing, the price is set low in order to acquire a following and market share.
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