Enter your email address to download and customize spreadsheets for free
Price skimming and penetration pricing are two different pricing strategies. Price skimming involves setting a high price for a new product to skim maximum revenues layer by layer from those willing to pay the high price. The company makes fewer but more profitable sales. On the other hand, penetration pricing involves setting a low initial price to penetrate the market quickly and deeply—to attract a large number of buyers quickly and win a large market share. The high sales volume results in falling costs, allowing the company to cut its price even further.
Question was asked on:
Last up, analyze two competing pricing strategies and how well they capture market share over time with the Market penetration tab. Below the charts, there are two strategy tables where you can plot the data from your competing strategies. Enter the strategy name, the dates, price points, units sold, and market share captured to compare progress in phases. Here, two opposite strategies to capture market share are assessed: price skimming versus penetration pricing.
Asked on the following spreadsheet:
Need to evaluate the best pricing strategy for a product? This Pricing Strategy spreadsheet includes the top pricing tools to evaluate cost, feature, ...
Download free weekly spreadsheets
Enter your email address to download and customize spreadsheets for free
Not for commercial use
Download 'Pricing Strategies ' spreadsheet — 13 sheets
+39 more spreadsheets per quarter
that's $3 per spreadsheet
/ Quarterly
Commercial use allowed. View other plans
Find where you shine in the competitive landscape of your market and build products that set you apart. Use this presentation to craft or improve upon your product strategy, communicate the vision, and organize cross-functional collaborations that allow everyone to work toward a common goal.
How can you create the best product with the least cost of failure? Use our Minimum Viable Product presentation to dedicate the right resources and develop the most important features that users actually want, gather usability feedback, and continuously reiterate until your product is widely adopted and loved.
Want to identify the most high impact areas to save costs across your organization? Use our Cost Optimization presentation to organize cost reduction initiatives, and uncover which will bring the greatest reward with the least impact to business efficiency and quality.
Need to improve your product pricing to maximize your profit margin? This Pricing Strategies Toolbox includes some of the most useful and common pricing strategies. With these tools, evaluate price sensitivity and pick the right pricing for the right market to maximize profit margin for any product.
Take the most advantageous pricing approach to increase profitability of your organization. Use our Pricing Strategies presentation to outline factors that influence your decisions and settle on the most suitable pricing options based on current market conditions.
When in doubt about a decision, a potential project or changes to a venture, you need a reliable evaluation tool. Our Cost-Benefit Analysis presentation empowers you to get the most out of every proposal and idea, identify the highest and most optimal return on an investment based on the cost, resources and risks involved and make data-driven, precise decisions.
Is your business eyeing a new market? Use our Market Entry Strategy presentation template to discover if an expansion investment is worth it. Whether you want to enter a new geography, new sector, or new demographic, a strong market entry strategy is required to plan out the likelihood of success vs the cost of failure.
How do you stay innovative and provide the right values for customers? Effective product development allows companies to sustain, grow, and thrive in both old and new markets. Our Product Development framework is useful for aspirational product developers who want to learn the product development process and for seasoned product managers who want to improve workflows with additional tools.