Your thought on Price skimming

[cherry123]

Price skimming is the opposite of a penetrative pricing with price skimming a company charges the product at high price the initial time the customers will pay then, lowers it over time.

Now when the demand of initial customers are satisfied and there's competition afterwards, the company reduces the price to lure other price-sensitive customers


What do you think about this method of selling?

 

[Heatman]

I personally believe that price skimming would only work better when there's a big scarcity of the particular products in the market. I might be wrong anyways!

 

[Magnus2022]

I think price skimming will only yield good result in monopoly market but will crumbles in a highly competitive market. Presently, our markets are competitive and proactive and not suitable for price skimming. Secondly, price skimming will be possible in a case of scarcity of some products

 

[Elendu]

A company can earn higher profits in initial stage of the product launch, which can be used to recoup the costs of development, marketing, and other expenses and gradual lowering of the price over time may cause some customers to delay their purchase until the price reaches their desired level, which can reduce the overall revenue.

 

[cherry123]

Yeah skimming strategy can only yield good result in monopoly which can be used to recoup the costs of development but will crumbles in a highly competitive market later on