Market penetration pricing examples how to#

'When the brand was less well known in the UK, our price was similar to that of competitors, but the quality was better. “Penetration pricing works very well for us,” says Jennifer Brown, managing director of leather accessories company Pampeano, which used penetration pricing to enter the UK market around eight years ago but now retails here at full price. “Set it too high or too low, and you stand to lose your market share and sales.” Example of penetration pricing 'A mass-market product with already stiff competition means you can take a clue from your competition to find that sweet balance,' says Brian David Crane, founder of digital marketing fund Spread Great Ideas. The way you price your product also contributes to its perceived value within the competitive landscape. Pricing your product can be a tricky balancing act between what consumers are willing to pay for your product or service, and what works best for your business. Why is pricing strategy important to product management?

Market penetration pricing examples how to#

In this article, we explore the advantages of penetration pricing (as well as its disadvantages) and offer insight into when and how to make this strategy work for you. There are many approaches, and choosing the right strategy depends on a number of factors, including market conditions, competitive landscape, and the maturity of your product or service. Getting your pricing strategy right is one of the most important parts of running a good business.