![]() Intuit accepts no responsibility for the accuracy, legality, or content on these sites. Intuit does not endorse or approve these products and services, or the opinions of these corporations or organizations or individuals. Increased Sales Volumes: Penetration pricing can help businesses increase their sales volumes. We provide third-party links as a convenience and for informational purposes only. Readers should verify statements before relying on them. does not warrant that the material contained herein will continue to be accurate nor that it is completely free of errors when published. Accordingly, the information provided should not be relied upon as a substitute for independent research. does not have any responsibility for updating or revising any information presented herein. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation. Applicable laws may vary by state or locality. Additional information and exceptions may apply. This content is for information purposes only and should not be considered legal, accounting, or tax advice, or a substitute for obtaining such advice specific to your business. ![]() If you make a bold offer, you better be able to back it up.A free product (even for a limited time) can be the ticket for long-term awareness and sales. Quick Market Entry: Penetration pricing facilitates a swift market entry, enabling a company to establish a robust brand presence without delay.Companies adopt penetration pricing strategies when the market theyre looking to enter is overcrowded. The goal of a penetration price strategy is to offer a product or service at a low rate during launch to attract early customers, build a loyal following, or even export to international markets. There are two critical takeaways from Sunny Co Clothing’s penetration pricing stunt: Goals and advantages of penetration pricing. Nevertheless, Sunny Co emerged from the situation with thousands of new loyal followers and an infamous legacy. But there was a problem: the sudden surge in sales forced the brand to cap the offer at 50,000 swimsuits, which caused a backlash on social media. More importantly, 346,000 orders came through. ![]() Sometimes the economy pricing is used for the country, and sometimes it’s used for domestic or international purposes. Word of mouth propelled Sunny Co’s Instagram following from 7,000 to more than a quarter-million overnight. We’ve always heard the word Economy in several different ways in our daily life. If you are not in a position to lower production costs, an increase in sales may not lead to profits. In the summer of 2017, two students at the University of Arizona came up with an idea to get attention for their swimwear line, Sunny Co Clothing, in a saturated marketplace: anybody who posted a picture of their classic red swimsuit (valued at $64.99) on Instagram would get a free one-just pay shipping. Market penetration pricing does present some disadvantages: There will be lower profit margins. Clothing: The pros and cons of a viral swimsuit giveaway 0.0 / 5 Created by: Mellyboo12345 Created on: 10-04-16 09:23 Penetration Pricing. Of course, a competitive edge is one of the discernible advantages of a penetration pricing strategy.
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