Overview: Price Skimming | ||
Type | ||
Definition | Charging a high price for a new product and reducing the price with time. | |
Related Concepts |
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.
Pricing StrategyAn overview of common pricing strategies.
Price Discrimination
A list of price discrimination strategies.
Price War
An overview of price wars.
Price EconomicsA list of price economics principles and theories.Premium Pricing
A definition of premium pricing with examples.
Penetration Pricing
A definition of penetration pricing with examples.
Variable Pricing
The definition of variable pricing with examples.
Channel Pricing
A definition of channel pricing with examples.
Supply And DemandAn overview of supply and demand with examples.Value Pricing
The definition of value pricing with examples.
TopSimplicable is a modern encyclopedia that has been updated daily since 2010.Business TheoryA list of interesting business theories.Knowledge WorkA definition of knowledge work with examples.Office PoliticsA list of social processes, absurdities and strategies related to office politics.Product DevelopmentA guide to product development.Types Of KnowledgeThe differences between types of knowledge.Trough Of Sorrow
An overview of the trough of sorrow.
Business ModelsA list of common business models.MarketingA list of key marketing strategies.Competitive AdvantageA few sources of competitive advantage for businesses.
TrendingThe most popular articles on Simplicable in the past day.
New ArticlesRecent posts or updates on Simplicable.
© 2010-2023 Simplicable. All Rights Reserved. Reproduction of materials found on this site, in any form, without explicit permission is prohibited. View credits & copyrights or citation information for this page. |