Key Disadvantages of Penetration Pricing Strategy For a Wholesale Business


Penetration pricing is a strategy that a wholesale business implements when it introduces new products in an already overflowing sector at a comparatively lower price. Some wholesale traders forgo present-day profits in return for a good market share in future. According to experts, it can bring new customers into your store, increase your customer base and build customer loyalty. However, if implemented incorrectly, it can make you lose money and may also increase your competition in the market rather than decrease it. Don't forget that penetration strategy works best when the wholesale products are in high demand. Therefore, before implementing this strategy, check the demand before you consider cost/profit objective, estimate product's lifecycle, or look for customers while keeping an eye out for your competition.

Otherwise, things can go wrong. Let's discover how it can wreck a wholesale business, if implemented in a wrong way. Disadvantages of penetration strategy The strategy is more often used when wholesalers and businesses, wishing to explore new market, see the potential of their wholesale products or want to build a large market share. Demand of a product plays the most significant role here. For instance, customers will relatively care less, if you have launched a low priced doorknob as compared to low priced computer accessories or everyday use items. At the initial stage, a company has to forgo short term profit in hope to recollect profit after gaining a larger market share. Low pricing reduces the chances to earn good revenue. Furthermore, if the consumers reject product for any reason, the company may have to kiss the industry goodbye. The company may have to bear irrecoverable loss in the form of no revenue and no market share 's assume that customers accept your product at a given price.

However, this extremely low pricing structure can bring hurdle for you in the long run. Introductory prices are low but it becomes difficult to attain the same position in the market when you increase the price. Though the price increase is inevitable with the passage of time but seeing the hike, people may get back to their previous 't forget that by lowering the price, you are serving the customers looking for cheap deals. It shows you may be missing your target customers and it is certainly not good for any new entrant looking to establish its market and win market share. You can say that penetration strategy helps to win false cannot implement this pricing strategy if you deal in a particular niche or luxury products. It is because whenever customers buy such products, they do not look at price but give prime importance to the premium quality of products. All around the world, people associate premium quality products with high prices. Therefore, be very careful before implementing this pricing strategy if you are planning to implement it on luxury products, high-end automobiles, expensive gadgets and accessories.Penetration pricing strategy can go horribly wrong for your business if competitors also decide to further lower down their product prices. It can simply start a price war and gradually, all the competitors of this sector will get involved in this price war and resultantly, it will be dangerous for all. These are a few disadvantages associated with this pricing strategy. It may stray you on to unethical territories just to knock out competitor from the sector so be very careful while implementing this pricing strategy for your offers.

How to Choose a Good ‘We Buy Houses For Cash’ Group?


You might have come across many 'we buy houses for cash' companies which are active in Australia. These companies can help people to sell a house for cash fast and help them in their tough financial conditions. There are quite a few of these agencies which are active in the country and so, people may get very confused when it comes to choosing the services of any one of these agencies. People often have the need of selling their house because of job loss, divorce, unaffordable mortgage payments, debt problems, mortgage default, fire damage, tax bills, facing foreclosure, bad tenants, expired listing, job transfer, relocation, health reasons, broken relationships etc. If you are any of the above situations you will need access to fast cash and selling your house to a good 'we buy houses for cash' group can help you in getting the desired amount of cash in a short period of time. However, choosing the wrong people to work with can be disastrous as you may not get the service you need quickly.

This is why, you should hire the services of the best 'we buy houses for cash' group available in the market. How to choose the best 'we buy houses for cash' group? When choosing any 'we buy houses for cash' company you should consider the services and the facilities they offer, which should include: ?? They give you a fast and quick offer ?? You are provided with an honest and fair offer ?? They keep communication lines open ?? They respect your confidentiality and privacy ?? You do not have to be under any unreasonable obligations ?? They buy your house even if it needs repair ?? The payment is process in a short period of time ?? The representative has good reputation ?? The representative has been in the business for a while ?? They buy large, small, fixed, occupied and all other kinds of houses We are a 'we buy houses for cash' group who can offer you with all the above facilities and more. We have a team of qualified individuals who can provide you with additional assistance and take you through the process of selling your house for fast cash. As we follow a simple, logical and transparent policy, you will not be cheated and we will make sure that you get a fair deal and a handsome some of money in your hand, in no time. How are we different? Our representatives will not only offer you a great deal but we will also make sure that you get one of the best deals in the business. We treat each individual differently as we understand that different people have different needs.

We understand that selling your home is not an easy decision. Sometimes it is the last resort and often we find that many people don't leave enough time for the sale or simply not aware that to get a sale involves discounting or waiting. Even then there's not guarantee due to factors outside of your control. Whatever the reason we are different because we can help you. It is a policy of ours, not make any false promises and we value our commitment to the clients. At our ' we buy houses for cash' group who will serve you with integrity.