Once early adopters pay higher prices for such products or services then companies can optimize their sales volume through price drops to target the mass market share. However, slowly but surely when the product gets older in the market, then the price is dropped and the product is brought at competitive pricing. It is used when a product, which is new in the market or just launched, is sold at a relatively high price because of its uniqueness, benefits to customers, or its current Wow factor. The price changes taking place in this method are useful in targeting early adopters when the brand’s primary focus is not the mass market. Price skimming is a pricing strategy in which the products’ prices are set high while launching and product, and afterward, the price of the same will be brought down as target audiences become more acquainted with those products or services.
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