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One of the reasons that marketers of new, innovative products often start out with a price skimming strategy rather than a market penetration strategy is that it is easier to lower prices than to raise them.
What are the skimming strategies?
When offering a product or service for the first time, a company may use the price-setting approach known as "price skimming." Skip content that offers explanations, anecdotes, statistics, or other elaboration when you are skimming. The introduction, chapter summaries, first and last sentences of paragraphs, bold words, and text elements should be your primary points of attention rather than reading every word in great detail.
Skim pricing, often referred to as price skimming strategies, is a pricing strategy that establishes high initial costs for new products before lowering them as rivals enter the market. Penetration pricing, which sets low initial prices for newly released products in an effort to attract a large consumer base, is the reverse of skim pricing.
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