![]() The goal is to gain market share by aggressively getting customers in the door. Bonus: 10 rapid-fire pricing strategy tips rooted in data. Pricing penetration is a common strategy that companies use to enter a new market or introduce a new product. A penetration strategy involves offering a new product or service at a low price to get customers’ attention. When prices increase, those customers may become dissatisfied and stop purchasing the product or service, or find another lower price competitor. While it may get you customers and decent sales volume, youll need a lot of them and youll need them. If a company uses penetration pricing, customers may begin to expect permanently low prices for that product or service. Penetration pricing also allows companies to gain a large majority of market share before their competitors can react. Therefore, penetration pricing is not recommended as a long-term pricing strategy for any business. ![]() ![]() However, this is not a guarantee, and sometimes customers could remain a financial drain. Potential race to the bottom: If your penetration prices lead to retaliatory low prices, then the whole market might reorient towards cheap prices but low quality, and it is the clients who will suffer. Neueinsteiger, die diese Option wählen, sollten sich in einem Markt mit hohem Wettbewerb befinden, der einen Massenmarkt anspricht und das Potenzial für Skaleneffekte hat. The hope is that these customers will grow loyal to the product or brand, and buy-in to any upsells or cross-selling. Inefficient long-term strategy: Penetration pricing is always going to be a short-term strategy, and you will still need to come up with a long-term one eventually. Ist eine Penetration Pricing Strategie für Sie geeignet Die Penetration ist nicht für jede Marke die beste Preisstrategie. The first advantage of penetration pricing is attracting a quick influx of new customers who see the value of the product, and feel they’re getting a good deal. Here are some steps to prepare for an effective negotiation: 1. Penetration pricing has a few advantages, but there are some important potential pitfalls to consider as well. Advantages and pitfalls of a penetration pricing strategy
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