Penetration Pricing
Categories: Marketing
They talk about this on the Castro. And used to in Hell's Kitchen, Manhattan. And on a street in Amsterdam. But that's a different flavor.
Penetration pricing is actually about pricing a product so low that it penetrates an otherwise-fortressed environment. Like...when a Chinese semiconductor maker wants to penetrate the otherwise-fortressed U.S. dominated computer hardware industry, they might drop their price to half of whatever "market" is at that time, knowing they'll lose billions before they make a dime. But being inside that market is an obviously worthy-of-pain event, so they make the sacrifice. See: Dumping.
It's a war out there, whether we acknowledge it or not.
