priceskimming
Price skimming is a pricing strategy used by firms when launching a new product or service. The core idea is to set a high initial price to maximize margins from early adopters who are willing to pay more for novelty or perceived quality, then lower the price over time to attract more price-sensitive customers.
By creating a price trajectory that captures different willingness to pay, firms can recover development costs
Compared with price penetration, skimming starts high and aims at high-margin segments rather than rapid market
It is common in consumer electronics, luxury goods, software, and pharmaceuticals where new features, quality, or
Ethical and regulatory considerations may apply, particularly around price discrimination and anti-competitive behavior. When applied judiciously,