A pricing technique designed to allow a business to charge each potential customer the most that he or she would be willing pay for a given product or service. The product or service is first offered at the highest price that customers will pay, and the price is incrementally dropped until it reaches a level designed to be viable for the long term.
Related information about price skimming:
- Price skimming - Wikipedia, the free encyclopedia
Price skimming is a pricing strategy in which a marketer sets a relatively high price for a product or service at first, then lowers the price over time. It is a temporal ...
- Price Skimming Definition | Investopedia
A product pricing strategy by which a firm charges the highest initial price that customers will pay. As the demand of the first customers is satisfied, the firm lowers ...
- What is price skimming? definition and meaning
Definition of price skimming: A pricing technique designed to allow a business to charge each potential customer the most that he or she would be willing pay for ...
- Pricing Strategies - Skimming
Sep 23, 2012 ... The practice of 'price skimming' involves charging a relatively high price for a short time where a new, innovative, or much-improved product is ...
- What is Price Skimming?
Price skimming is a business technique that involves charging a high price for a product when it's initially released, and then...
- What Are the Benefits of Skimming Pricing Strategy? | Chron.com
Price-skimming strategies are used to price luxury goods. ... Price skimming is a type of strategy that businesses use when they are first to enter the market with a ...
- Price Skimming
Price Skimming Strategies. A skim strategy is a radically different approach from penetration pricing. When skimming, a company initially sets a relatively high ...
- Price skimming: Definition from Answers.com
Price Skimming A product pricing strategy by which a firm charges the highest initial price that customers will pay.