The Penetration Pricing Strategy

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Subscribe to Alanis Business Academy on YouTube for updates on the latest videos: https://www.youtube.com/alanisbusines... 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.