What are the advantages of penetrating pricing method?

1.	What are the advantages of penetrating pricing method?
Answer» Following are the advantages of penetrating pricing method: 1. Quick rise in sales: Penetrating pricing results in the increase in sales with a very high speed. 2. High turnover: The turnover of the enterprise is raised in very short duration. This strengthens the position of enterprise in the market. 3. Return on investments: This method brings decent return on investments. The minimum profit margin is also assured with the sale of each unit. 4. Best method for price elastic goods: When a small range in price brings more change in demand, such products have penetrating pricing as the best method.

Answer»

Following are the advantages of penetrating pricing method:

1. Quick rise in sales: Penetrating pricing results in the increase in sales with a very high speed.

2. High turnover: The turnover of the enterprise is raised in very short duration. This strengthens the position of enterprise in the market.

3. Return on investments: This method brings decent return on investments. The minimum profit margin is also assured with the sale of each unit.

4. Best method for price elastic goods: When a small range in price brings more change in demand, such products have penetrating pricing as the best method.

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