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What is skimming pricing?

sobes.tech AI

Answer from AI

Skimming pricing — this is a pricing strategy where a company sets a high initial price for a new product or service to maximize profit from the segment of buyers willing to pay more.

Over time, the price gradually decreases to attract more price-sensitive customers and expand the market.

Example: an electronics manufacturer releases a new smartphone at a high price, targeting enthusiasts and early adopters, then lowers the price for the mass market.