Penetration Pricing

Definitions

1. A pricing strategy that starts aggressively low to win market share quickly, often with the expectation that adoption, scale, or later expansion will justify the early discounting. It is risky when later price increases are hard to enforce.

   In plain English: Starting with low prices to win customers quickly.

   Example: "They used penetration pricing to get a foothold in a market dominated by incumbent vendors."

Related Terms

• MVP
• Freemium
• Distribution Strategy
• GTM
• Loss Leader
• Partnership
• Pricing Strategy
• Revenue Model
• Wrap Rate