Definition of price penetration

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She writes two electronic newsletters and has a Bachelor of Science degree in chemistry from Clemson University. Best Use Penetration pricing is most appropriate when demand for a new product is expected to be high and the product can be easily copied by many competitors. Unauthorized duplication, in whole or in part, is strictly prohibited. Selecting an Appropriate Pricing Strategy. Disadvantages If sales fall short of projected goals, the company could end up with a large inventory and higher-than-expected costs. Skip to main content.
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price penetration

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Penetration pricing

Rather than offering products at low prices with low or nonexistent margins, marketers using the skimming strategy offer products at high prices with relatively high margins. Sophisticated content for financial advisors around investment strategies, industry trends, and advisor education. If a company continues with its penetration pricing strategy for some time, possible new entrants to the market will be deterred by the low prices.
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Definition of price penetration
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