Your sales will skyrocket, or at least they have the potential to do so, which by itself will put you in a position to set the trend for your competitors and while you’re at it position yourself on the market.Īssuming you’ve built a certain customer base and you’ve been successful when trying to present the value of your product, there’s good chance users will switch from your competitor’s products to your offer. This is probably the main reason why you’re considering setting low prices for your products or services. Some of the reasons why small eCommerce businesses may benefit from using a market penetration low pricing strategy: Increased Sales Volume Certain number of customers above the threshold.Successful implementation of cost leadership requires: One of the most used low price strategy models is the market penetration one, which we’ll take as our focus point in this article. Where economies of scale can be achieved.When the product has no competitive advantage.The strategy is employed most often in two cases: The goal of setting up a low price strategy plan is to trigger increase in demand for the product while the company manages to gain a certain share of the market. Low Price Strategy and Small eCommerce Businesses.
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