The information is "AS IS", "WITH ALL FAULTS". Īrticles on are general information, and are not intended to substitute for professional advice. Impact Pricing: Your Blueprint for Driving Profits. Principles of Pricing: An Analytical Approach. Penetration pricing achieves low-profit margins while skimming pricing achieves high-profit margins. On the other hand, skimming pricing achieves small sales due to the high pricing. Penetration pricing achieves bulk sales due to the low prices. However, skimming pricing is used when the product demand is inelastic. Penetration pricing is used when the product demand is elastic. While penetration pricing aims to penetrate the market easily, skimming pricing aims to skim the market via the introduction of new products. On the other hand, skimming pricing refers to a pricing strategy where high markups are charged for a new product hence the high price. Penetration pricing refers to a pricing technique where a new product is introduced to the market at a low price to make market penetration easier.
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