Penetration Pricing

Company offering products at or below cost as part of an effort to open up the market and acquire new customers

What's Inside

    What is Penetration Pricing?

    Penetration pricing is when a company offers an item at or below cost as part of an effort to open up the market and acquire new customers by driving down barriers such as price sensitivity, lack of awareness about availability of the product, etc.

    Who Uses This?

    Penetration pricing strategies are often used by startups who want people to pay attention to their brand without heavily investing in traditional marketing methods like TV ads, billboards that are expensive