The Penetration Pricing Strategy
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Subscribe to Alanis Business Academy on KZread for updates on the latest videos: kzread.info... Penetration pricing is a common pricing strategy used by businesses. To employ effective penetration pricing, businesses start by offering a product at a low price point. By doing so, the business is hoping to attract new customers and increase its share of the market. Once the business has increased its market share, it will slowly begin to increase prices to a point where they can offer the product in a profitable manner.
To learn more about penetration pricing, as well as the conditions that need to exist for the strategy to be effective, watch the following video.
Пікірлер: 12
another excellent video...good info
Simple yet effective, I learned a lot from this short video...Thank you :-*
Thanks. You made it very simple. I like it:)
+Alanis Business Academy The risk of losing customers over the period when the price is raised can be substantial, is there any good case practice of companies that employ this pricing strategy and at the same time, mitigating the risk of losing customers after increased pricing?
thank you keep posting :)
@Alanisbusinessacademy
7 жыл бұрын
Thank you Deepak!
@franciavaldez2892
4 жыл бұрын
please!
Thank you sir,in india jio mobile is the best example.
Thank you
@Alanisbusinessacademy
7 жыл бұрын
+Pooja Devi You've very welcome! Thanks for watching.
Awesome
Notes: Penetration pricing is setting a low initial price to increase market share, and slowly raising prices thereafter. This strategy is the opposite of price skimming. Low profitability at first, which is why the price must increase with time. Low price point to increase market share, followed by gradual increase of price.