Merchandising: Four Pricing Strategies and When to Use Them

* Market penetration: The opposite of market skimming, a market penetration strategy sets a low price to build high sales volume and increase market share. “The price, however, must not be so low that it becomes indicative of poor quality or unacceptable performance,” the authors point out. This can be used either as an entry strategy for products that are new to your catalog, but for which a market already exists, or as a way to increase your share of market for product categories you’d like to expand.