Price Skimming

In this video we explain the concept of price skimming.

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VIDEO CHAPTERS
00:00 Introduction
00:25 What is price skimming?
01:14 When should price skimming be used?
01:49 Market conditions for price skimming to work

VIDEO SUMMARY

This video is about a marketing strategy called price skimming.

Price skimming is a pricing strategy that sets a high initial price for a new product or service. This is done to maximize profits from early adopters who are willing to pay a premium to be the first to have the product. The high price can also create a sense of scarcity and exclusivity, which can further increase demand.

For price skimming to work well, the product must be of high quality and have a well-established brand image. The company must also be able to deter competitors from entering the market with similar products.

Here are some key points about price skimming:

It is a pricing strategy that sets a high initial price for a new product or service.
It is done to maximize profits from early adopters who are willing to pay a premium to be the first to have the product.
The high price can also create a sense of scarcity and exclusivity, which can further increase demand.
In order for price skimming to work well, the product must be of high quality and have a well-established brand image.
The business must also be able to deter competitors from entering the market with similar products.