Skimming Price Concept

The expression Skimming Price designates a marketing strategy in which the product’s price is fixed above the market´s average price. The purpose of this kind of strategy, widely used in the launching stage of a new product, allows achieving right from the start a market segment less sensitive to the price, simultaneously helping to position the product. From the moment in which has been achieved the desired positioning or when the market segment less sensitive to the price has been satisfied, is generally adopted a price gradual reduction strategy. This way, will be easier to achieve the market segments more sensitive to the price.