Request a Demo

Which industry are you working in?
Consumer Goods and Retail
Telecom and Internet
Consumer Software
Other industry
What do you want to work on?
Pricing
Portfolio
Data analytics
Annual commercial planning
Product
Trade term negotiatons
Other
How much revenue did your company generate last year?
< $50M
$50 M > $1B
>$1B

Free event

Success

Thank you for registering for our upcoming event. You will receive a Zoom invite by email soon.

Unsolicited application

Application sent

Thank you for sending your application.

Glossary

Penetration Pricing

Definition

The basic idea of penetration pricing is to attract customers to a new product or service by offering a low price in the early market phase.

Explanation

In the case of price penetration, companies promote new products or services by setting a low price. This can lead to market penetration and result in higher market shares and sales volumes by winning customers from competitors.

What to watch out for

There is a risk of losing customers once prices increase. Customers often expect permanently low prices and may become dissatisfied and stop purchasing the product or service in case of a price increase. 

By introducing a low entry price, consumers may get the impression that the brand is of low quality.