What is Penetration Pricing and How to Use it

In this episode, I dive deep into the concept of penetration pricing—a strategy where you set an initially low price to attract customers quickly and gain market share, with plans to increase your price later. I'll break down how this approach differs from loss leader pricing and explain when and how to use it effectively. Whether you're in a highly competitive market or run a subscription-based service, understanding this pricing model can be a game-changer for increasing customer adoption, building brand awareness, and establishing long-term customer relationships.   Plus, learn how to implement limited-time introductory pricing, use creative bundling, and manage the transition to higher pricing smoothly. Remember, while passion drives your business, financial strategy sustains it. Tune in to explore how you can leverage penetration pricing to both scale your business and ensure lasting profitability.   What You'll hear in this episode: [0:50] Understanding Penetration Pricing [2:35] Examples and Applications of Penetration Pricing [5:05] Retention Strategies and Pricing Models [12:00] Implementing and Communicating Pricing Strategies   If you like this episode, check out: How to Package and Price Consulting Services with Michael Zipursky Why Simply Raising Prices Isn't Enough Do This Before Offering a Discount   Learn more about Gusto: https://gusto.com/r/shannon4861   Want to learn more so you can earn more?  Visit keepwhatyouearn.com to dive deeper on our episodes  Visit keepwhatyouearncfo.com to work with Shannon and her team  Watch this episode and more here: https://www.youtube.com/channel/UCMlIuZsrllp1Uc_MlhriLvQ  Connect with Shannon on IG: https://www.instagram.com/shannonkweinstein/   The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.