Starting at a lower price than some competitors will always be a risky decision as well. They might have the ability to negatively affect your image due to strong market influence. However, by researching the current market and implementing effective price penetration where competitors "catch up" once our positive reputation is lost, this will be the ideal way to successfully penetrate the market. We can do this by measuring market prices each quarter, which will allow the company to keep consumer spending in our store just below that of our competitors. As our low prices slowly begin to attract consumers, we may gradually implement higher sales prices due to customer demand. We understand that when starting a business, one can expect to break even or suffer a loss until business picks up, and that low prices could drive you out of business. However, we think it is a great idea to slowly enter the market by offering affordable prices that will gain the support and trust of our customers. Even though our prices will be low, this pricing strategy will increase efficiency. This will create pressures for cost control and reduction from the outset, leading to greater productivity. We will produce a lot to meet the demand of our customers, but at the same time we will increase our income. Implementation of penetration pricing at Cowsmoo Milk