How Innovative Brands Maximize Profits With Price Skimming Strategy?
Imagine launching a revolutionary product and not knowing how to price the product. Go mass-market or play it exclusively? Innovative product market players always search for new strategies to boost their profitability while maintaining their customer base. That’s when price skimming comes into the picture, a prominent pricing strategy for most business models. What Is Price Skimming? Price skimming is a pricing strategy where companies initially charge the highest price that customers are willing to pay for a new product or service. Then, over time, they gradually lower the price. Phases Of Price Skimming Strategy Check out the top 4 phases of price skimming strategies: Product Launch Pricing Phase The product is first launched at a high price in this phase. Early buyers who don't mind the high cost and want the newest things will be ready to buy. High Initial Pricing Phase After the first group of buyers has bought the product, the company gradually reduces the price. This aims