What Are Some of the Pricing Strategy Considerations for a New Product?
Developing new products is a common feature of running a business. Companies that develop new goods or services often meet a specific market niche in the economic marketplace. Businesses must find the best way to market these products and price them at a point where consumers are comfortable purchasing the product. Several pricing strategies exist when introducing new products in the economic marketplace. Although these strategies often depend on current market conditions, they can offer specific guidelines for pricing goods or services. Penetration Pricing Penetration pricing sets product prices low for a specific time period to gain market share and lure consumers away from current competitors. This is a common strategy when introducing new products into the current economic marketplace. Once companies develop a strong clientele base, they often raise product prices to the normal level. Economy Pricing Economy pricing usually represents the lowest price a company can charge for goods
