Market-skimming Pricing

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Definition: Market-skimming Pricing

Market skimming price is a high price of a particular product that exist for a period of time depending on the nature of product, its substitute and the demand. The prices is charged with an intention of making the most of the market .

The following conditions are a prerequisite for market skimming pricing-

  • Exclusivity ( Apple Ipod, Iphone)
  • Very High Demand of the product
  • Absence of a substitute or a competitor

Traps to watch out for-

  • Sales channel of the same product in across different  geographical markets
  • The urge of the consumer to pay and postponement of purchase


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