Data points: retail penetration by price point. (Industry Trend or Event)

Soft-Letter, June, 1996

Conventional wisdom suggests that price cuts are a good way to achieve broader retail distribution. But the real price-penetration story turns out to be a bit more complicated. When we look at the best-selling 3,000 SKUs in PC Data's monthly channel statistics, it turns out that products with a $20-$49 street price are the most successful at getting shelf space (42%-47% median penetration of the 24 chains that PC Data tracks), while bargain products priced below $20 actually show up in fewer chains (21%-26% penetration). Above the $50 level, developers have a harder time getting broad retail exposure--but even here the titles priced above $100 tend to be more successful than those in the $50-$99 range (37% penetration vs. 32%).

Source: PC Data Retail Report, April...