How to Set Product Prices in Any Competitive Market
A guide for entrepreneurs entering a new market.
Unarguably, there are tons of pricing strategies that you could use to get your customers’ attention. Unfortunately, you are not the only person with an idea of these strategies. Big businesses have used them in the past — and are still using them.
However, if you’re an entrepreneur trying to enter a competitive market, this pricing strategy will help you suck into your customers’ minds and win their trust. Keep in mind that this mix of pricing strategies is long term game and would require you to give up a part — or all — of your short term profits for long term profits and customer loyalty.
If you’re ready for business, you should be ready for the long term game. If that’s so, let’s move on to discuss how you should set your product prices.
Penetrative Pricing
From an endless list of pricing strategies, I’ve handpicked the penetrative strategy as a perfect building block for startup entrepreneurs or those looking to enter a new market.
Except you’re discovering a new market — like Steve Jobs did with Apple Computers, you are entering an already occupied jungle where the customers are all occupied by existing businesses. Nobody will give…
