Market-skimming Pricing is a strategy in which a new product is priced at a high initial price in order to extract maximum revenue layer by layer from segments that are willing to pay the high price.
In this approach, the company makes fewer but more profitable sales at the beginning. The strategy is appropriate when the quality and image of the product support the high price, when the costs of producing small volumes are not too high, and when competitors cannot easily enter the market and lower the price.
