Penetration Pricing Sounds Engaging

What is penetration pricing and who uses it? Penetration pricing strategy is used by a product or organization aiming to join a new market. Penetration pricing involves introducing the product or service at a lower price than competitors. Penetration pricing hopes people remain loyal to the product and service. Once the people are keen to product or service they slowly raise the price. One challenge with penetration pricing is competitors could lower their prices voiding your strategy.

 A new clothing company wanting to capture some of the fashion market might used penetration pricing.  When H&M first arrived in on the fashion scene it used penetration pricing. The clothing quality was good, fabrics were great and the prices were low. In H&M you could find jeans, tops and accessories for under $25.00. As their popularity increased so did their prices. H&M used penetration pricing by enticing customers with lower prices and then raised clothing and accessories prices. By then customers liked H&M and did not mind the higher prices. In addition, H&M maintains sales throughout the year. People are still loyal to H&M. H&M continues to use penetration pricing; they partnered with Versace they captured the high-end market offering designer duds at a lower price.

I have finished week 4 of my online courses. Now I can attend more events. I will writing the review for Shop Addicts Sexy in the city and IDOLL Agency Party.

xoxo,
RBG

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