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![]() ![]() Another potential disadvantage is that the low-profit margins may not be sustainable long enough for the strategy to be effective. What is penetration pricing Penetration pricing is an acquisition strategy for companies that are trying to gain a foothold in highly competitive markets. Both can make it difficult to raise prices later. The main disadvantage of penetration pricing is that it establishes long-term price expectations for the product and image preconceptions for the brand and company.
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