|Overview: Price Skimming
Charging a high price for a new product and reducing the price with time.
What is Price Skimming?
John Spacey, updated on
Price skimming is the practice of charging a high initial price for new product or technology. It is a pricing strategy that is designed to quickly recover research and development investments by charging early adopters of a new product a higher price.Early adopters of a product are typically loyal customers and fans who may be willing to pay a higher price to be first. When it comes to new technology, early adopters are often enthusiasts who are willing to pay more for cutting edge technology in a particular area.Price skimming often starts with a high price that may only appeal to a small percentage of customers. The price is then reduced gradually until the price appeals to a firm's entire target market.
PricingThis is the complete list of articles we have written about pricing.
If you enjoyed this page, please consider bookmarking Simplicable.
An overview of common pricing strategies.
A list of price discrimination strategies.
An overview of price wars.A list of price economics principles and theories.
A definition of premium pricing with examples.
A definition of penetration pricing with examples.
The definition of variable pricing with examples.
A definition of channel pricing with examples.An overview of supply and demand with examples.
The definition of value pricing with examples.Simplicable is a modern encyclopedia that has been updated daily since 2010. A list of interesting business theories. A definition of knowledge work with examples. A list of social processes, absurdities and strategies related to office politics. A guide to product development. The differences between types of knowledge.
An overview of the trough of sorrow.A list of common business models. A list of key marketing strategies. A few sources of competitive advantage for businesses.
TrendingThe most popular articles on Simplicable in the past day. Recent posts or updates on Simplicable. Site Map