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Pros and Cons of Using Price Skimming For Your Next Product Launch

Price skimming is a business strategy for pricing goods and services. When introduced to the market, the good or service is priced at a higher-than-usual price and then lowered incrementally over time.

The “skimming” refers to skimming off of customers willing to meet a specific price point. Once a customer segment is satisfied/saturated, that segment is “skimmed” off. The price is reduced, and the next segment of buyers is revealed.

In this article we will:

Review pros and cons of using price skimming as a strategy Examine real-world examples of this strategy Explore businesses best or least suited

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