skimming pricing
A particular pricing strategy an organisation applies by charging a high price when initially entering a market to benefit from premium prices some customers are willing to pay for a new product.
After the initial entry, the price is then reduced to widen demand. Price skimming is sometimes referred to as ‘riding down the demand curve’.
An exclusive dress could be sold initially at an ‘exclusive’ price to wealthier customers and the next season the price could be lowered, making it accessible to a less wealthy group of customers. The next season the dress could be mass produced and made available at lower prices to the mass market.
