Okuzeka
Marketing vocabulary · Pricing

Price skimming

Meaning in marketing, with examples

nounCommon term

In marketing, price skimming means: Launching a new product at a high price for customers who want it first, then lowering the price over time to reach more price-sensitive buyers.

In Turkish: kaymak fiyatlandırması, kaymağını alma stratejisi

How it is used

Typical for new technology, game consoles and fashion. It works best when a product is new and hard to copy and when early adopters are willing to pay more. The name comes from skimming the cream off the top of milk.

Example sentences

  1. The headphones launched at a high price as part of a price skimming strategy, and the price dropped after six months.

  2. Price skimming won't work here; three competitors already sell something similar.

Common collocations

  • price skimming strategy
  • use price skimming
  • skimming pricing
  • high launch price
  • penetration pricingLaunching a product at a low price to attract many customers quickly and win market share, often with a plan to raise the price later.
  • early adopterA person or company that starts using a new product, service or technology soon after it appears, before most other people do.
  • pricing strategyThe method a company uses to set and change its prices, based on its costs, its competitors, the value customers see and its business goals.
  • product life cycleThe stages a product goes through in the market: introduction, growth, maturity and decline, each with typical sales levels and marketing needs.

More terms: Pricing

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