What are penetration pricing and bundling strategies?

Penetration pricing sets an intentionally low entry price to win market share fast. The short‑term sacrifice in margin seeds a larger customer base that you can monetize later through upsells or normalised prices. Bundling, in contrast, groups products or features into one package at a combined price that’s lower than the sum of individual items. Both strategies try to reshape perceived value: penetration lowers the barrier to trial, while bundling encourages buyers to take a broader basket, which ultimately improves overall revenue per transaction.