Skimming pricing

skimming pricing
strategy used when a new product is introduced. It involves setting a high initial price primarily to recoup research and development investments; the price is progressively lowered as time passes and competition sets in.

Skimming pricing
Definition: When a firm charges a high initial price where some consumers are prepared to pay more for a new product. Eventually price is lowered to extend demand.
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skimming pricing strategy - Setting a relatively high initial price for a new product or service when there is a strong price-perceived quality relationship that targets early adopters that are price insensitive.

Skimming Pricing Strategy - if you desire quick cash and have minimal desires for significant market penetration and control, then you set your prices very high (this is sometimes called "skimming").

Skimming pricing - Is a pricing strategy used when a new product is introduced.

Skimming Pricing Strategy
A pricing strategy where you set the prices very high in the desire for quick cash with minimal desires for significant market penetration and repeat business.

See also: Skimming, Market share, Penetration pricing, Business plan, Barriers