A skimming pricing strategy:

Question

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A skimming pricing strategy involves establishing a high price initially to capitalize on the willingness of some customers to pay a premium for a new product or service. This is typically done when there is little competition in the market, allowing the company to maximize profits in the short term. As competition enters the market, the company may adjust pricing accordingly to maintain a competitive edge. This strategy is not focused on creating a "common man" image or providing low-income households with access to a product or service. It is also not intended to drive competitors out of business in order to achieve a monopoly position.

A Skimming Pricing Strategy