![]() This stage takes place when the seller's overall sales start to decline at the highest price he or she may charge, causing them to cut the price to fulfil consumer needs. Once all the objectives are satisfied, the actual product maker can cut pricing to appeal to more budget-conscious customers while maintaining quality against any low-cost knockoffs that enter the market. The idea is to make as much profit as possible when customer demand is high and there is no competition on the market. When a new sort of commodity comes on the market, price skimming is frequently practiced. ![]() Often called Price Skimming, it is a pricing technique in which a company will charge a high beginning price and then progressively reduces it to capture more price-sensitive clients. Skimming Pricing is the strategy that sets an intentionally high price relative to the prices of competing products.
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