Price Skimming

Knowledge Center

Description of Price Skimming. Explanation.

Definition of Price Skimming. Description.

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).

Special Interest Group - Price Skimming Special Interest Group (18 members)

Forum - Price Skimming   Here you will find interesting and educational discussions.   Price Skimming Cases and Examples (1 reactions) Hi, do you know of a remarkable case or an interesting examp...

Best Practices - Price Skimming Here you will find the most valuable ideas.

Expert Tips - Price Skimming Here you will find high-quality advice from experts.

Resources - Price Skimming Here you will find powerpoint presentations, micro-learning videos and further information sources. Overview of Pricing and Pricing Strategies Pricing...     News about Price Skimming         Videos about Price Skimming         Presentations about Price Skimming         Books about Price Skimming         More about Price Skimming

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  |  Strategy

More on Management  |  Return to Management Dictionary  | 

This ends our Price Skimming summary and forum.