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).

Price Skimming Forum
  Price Skimming Cases and Examples
Hi, do you know of a remarkable case or an interes...

Price Skimming Special Interest Group

Special Interest Group


Best Practices - Price Skimming Premium

Expert Tips - Price Skimming Premium

Resources - Price Skimming Premium

Overview of Pricing and Pricing StrategiesSign up

This presentation contains an overview of various ...
Usage (application): Pricing

News about Price SkimmingSign up


Videos about Price SkimmingSign up


Presentations about Price SkimmingSign up


Books about Price SkimmingSign up


More about Price SkimmingSign up


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

Special Interest Group Leader

You here


Return to Management Hub: Marketing  |  Strategy

More on Management  |  Return to Management Dictionary  | 


This ends our Price Skimming summary and forum.

About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2018 12manage - The Executive Fast Track. V14.1 - Last updated: 19-9-2018. All names of their owners.