Price Skimming

Knowledge Center

What is Price Skimming?

Price Skimming is a market-based approach to pricing wherein a high price is charged in initial market maturity stages to ' cream off the market'. Prices are set high in order to attract the least price-sensitive customers and to generate profit quickly, before competitors enter the market and start to force price erosion.

It is an attractive strategy for small, highly innovative companies with a new and unique product. Prices can and should be lowered after the cream has been skimmed. An associated advantage with this pricing method is its contribution to building the value of a brand or of the reputation of a firm. The method is also useful for prestige products and in general for products where demand is relatively inelastic (customers are not very price sensitive).

Forum Forum about Price Skimming. 🔥 Price Skimming Cases and Examples Hi, do you know of a remarkable case or an interesting example of how price skimming appaoches are being used?Please enter a reaction to share it for other people to enjoy! Thanks for contributing..... 2   1 comments Start a new topic about Price Skimming Sign up for free

Courses about Price Skimming. Beginners Course Advanced Course Course for Experts

Expert Tips Advanced insights about Price Skimming. Here you will find professional advices by experts. Consultancy Tips Teaching Tips Practical Implementation Tips

Information Sources Various sources of information regarding Price Skimming. Here you will find powerpoints, videos, news, etc. to use in your own lectures and workshops. Overview of Pricing and Pricing Strategies Pricing This presentation contains an overview of various pricing strategies, including for example pricing based on competition...

Tools Useful tools regarding Price Skimming. News Videos Presentations   Books Academic More

Compare with: Product Life Cycle  |  Marketing Mix  |  Promotional Pricing  |  Competitive Pricing  |  Discount Pricing  |  Cost-plus Pricing  |  Standard Cost Pricing  |  Marginal Cost Pricing  |  Target Pricing  |  Penetration Pricing  |  Psychological Pricing  |  Perceived Value Pricing

Return to Management Hub: Marketing & Sales  |  Strategy & Innovation

More on Management  |  Return to Management Dictionary

This ends our Price Skimming summary and forum.