A skimming pricing strategy sets a relatively high price for a product to appeal to the segment of the market that is not sensitive to price.

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A skimming pricing strategy targets the segment of the market that is not sensitive to price by setting a high initial price for a new product or service. As early adopters are typically willing to pay a premium for something new or innovative, this strategy can help a company maximize profits before competition increases and prices begin to fall.

A Skimming Pricing Strategy Sets a Relatively High Price for a Product