Pricing Strategies
, Price skimming
Price skimming involves charging a high price initially
and then lowering it overtime.
A price skimming strategy tries to get the highest
possible profit from innovators and early adopters. As t
demand from these two consumer segments fills up, th
price of the product is reduced, to target more price-
sensitive customers
One advantage of price skimming is consumers who w
can benefit from lower prices. This leads to a dynamic
target market as the price changes. Therefore, a larger
amount of people have this product available to them,
creating more sales and profits.
One disadvantage is the customers who pay a high pric
may feel ripped off. This leads to customers getting
, Price skimming
Price skimming involves charging a high price initially
and then lowering it overtime.
A price skimming strategy tries to get the highest
possible profit from innovators and early adopters. As t
demand from these two consumer segments fills up, th
price of the product is reduced, to target more price-
sensitive customers
One advantage of price skimming is consumers who w
can benefit from lower prices. This leads to a dynamic
target market as the price changes. Therefore, a larger
amount of people have this product available to them,
creating more sales and profits.
One disadvantage is the customers who pay a high pric
may feel ripped off. This leads to customers getting
