What is a Price Skimming Strategy
What is a Price Skimming Strategy - infoweb24.com

What is a Price Skimming Strategy?

What is a Price Skimming Strategy? – Price skimming is a type of pricing strategy that can yield higher returns on initial investments, affect the brand and product appeal, and allow the brand to target specific segments of a particular market.

Brands use exorbitant pricing strategies to increase revenue and profit margins throughout the product life cycle and help maintain a better ROI (return on investment) in product research and development. Customers who are more loyal or looking for premium products are more likely to pay a high price. Excessive pricing causes lower prices to attract the rest of the market.

What is a Price Skimming Strategy?

Excessive pricing strategy (also known as cost-effective pricing) is a pricing strategy in which the company obtains a high initial price and then gradually lowers the price to attract price-sensitive customers. The pricing strategy is usually used in the first move, which faces little competition. Excessive pricing strategy is not a good long-term strategy, because competitors will eventually identify their competitors and put price pressure on the first company.

Price Skimming Strategy In other words:

Excessive pricing is a pricing strategy that is often associated with innovative and high-demand products. Brands set high price caps for new products due to market analysis and consumer demand.

What is a Price Skimming Strategy
What is a Price Skimming Strategy – infoweb24.com

The top layer is made up of loyal customers with high prices. A retailer then enters the sales game with a gradual decrease in price over time to accommodate new layers of consumers. Retailers will continue to lower their prices until the base price falls.

Retailers initially set prices high because of demand, and then slowly reduced prices by reducing product freshness and increasing availability. Samsung, for example, uses an exorbitant pricing strategy to sell its mobile phones. When customer demand is high due to a news release, the price is set to attract the most revenue. After the initial excitement subsided, Samsung adjusted the price points to suit more consumers in the market.

Samsung initially uses price cuts to attract market attention and the share of its main competitors. For example, the price of their Galaxy phones was set to eliminate the share of the iPhone.

Price Skimming Strategy logic

Excessive pricing strategy is used to maximize profits when using a new product or service; Thus, the pricing strategy is largely tied to the successful sale of a product. Where the company is entering the market for the first time with a new product, it is better to use this method. In such a strategy, the goal is to generate maximum profit in the shortest possible time, not to generate maximum sales. This enables the company to recover quickly from drowning costs before competition and price pressures increase.

Consider the release of an innovative product, a theory that explains the extent of product expansion in a social system. Innovators are people who want to be the first to receive a new product or service. They are risky and not price sensitive. Excessive pricing strategy tries to get the highest possible profit from the first innovators and innovators. As demand from these two consumer sectors increases, the price of the product decreases so that price-sensitive customers, such as the early majority and the late majority, are targeted.

The main purpose of exorbitant pricing

Excessive pricing involves targeting high-end consumers, those who buy at the highest prices. Excessive pricing ensures that the brand more closely coordinates price-related pain points with customers. Nike, for example, the manufacturer and retailer of shoes and clothing, applies exorbitant pricing to popular customers. This is done by setting a premium for new products and limited supply.

Brands (such as Nike) that are at the top of their market have no problem setting high prices. High prices are guaranteed by customer demand and loyalty to the Nike brand. Months after launch, Nike will cut prices to accommodate more layers or subsets of customers.

The dynamic between online and offline sales adds another layer of strategy. Retailers need to match store and online prices, as the Ropo effect may increase in-store sales.

Picture and example of exorbitant pricing

Imagine Company A is a phone company that has recently developed a new proprietary technology for its handsets. Company A follows an exorbitant pricing strategy and sets a non-profit price at the first level to recoup R&D costs. After meeting demand at this level, the company sets the next price at the second level to attract price-sensitive customers and apply price pressure to competitors entering the market.

In the exorbitant pricing strategy, Company A generates A + B revenue by selling Q1. With subsequent pricing, the company generates additional revenue, or C, by selling Q2-Q1. Finally, total revenue is calculated by the formula A + B + C and total sales Q2.

The difference between exorbitant pricing and penetrative pricing

Successful retailers are agile with their pricing strategy, as setting a low or high price cannot be a coincidence. Exorbitant pricing and penetration prices are different despite the same usefulness in application.

Influential pricing involves lower pricing compared to market competitors. This allows us to promote the brand well in a busy market and quickly gain market share through consumers who are looking for a selling price.

Influential pricing also helps to attract new users, introduce brands to the market, compete with market leaders and gain market share. Often, this strategy is coordinated with price monitoring software for optimal scheduling and performance.

The result of the Price Skimming Strategy speech

Excessive pricing is another tool for retailers to gain market share and beat competitors. This strategy can be extremely useful if used in combination with sophisticated pricing software. To succeed in this business, get more return on the initial investment, use your new products to attract top buyers, learn more about customer segmentation, and use data to know future pricing strategies.

 

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57 comments

  1. زه دافعانستان څحه مهاجرت عواړم نو هيله کوم چى پدى کارکى راسره مرسته وکړى طليبان لحواګواښل کيږم

  2. زه چى کاناډا هيواد ته مهاجرشم

  3. You can help me
    My life is a very danger

  4. I want to take refuge in your country because of insecurity

  5. Faridoon miakhel

    زه په IRcموسيس کي کار کوم او غواړم څ جرمني هيواد ته لاړو شم

    • Hi my name is Abdul Qudos Bawari
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      Phone.+93764062485

  6. Ikramullah Danish

    Hi, my name is Ikramullah Danish, father Delawer Khan and elder brother Abdul Hadi from Afghanistan Khost Sabari, I graduated from high school and I wanted to take an exam to university but now it’s so difficult for me and other to follow the university and also in the past I supported from afghan government by facebooke but when Taliban controled the capital of afghanistan and all provinces I was threaten many times by Taliban members and in the future I’m in much problems because their members have said me that you must go out from Afghanistan immediately. If you stay we’ll kill you, so help me to save and find food for our children

  7. I want to to Canada for my seafty my life is in danger

  8. Hi, my name is Asad Fazli father fazal from Afghanistan Khost Sabari, I graduated from high school and I wanted to take an exam to university but now it’s so difficult for me and other to follow the university and also in the past I supported from afghan government by social media but when Taliban controled the capital of afghanistan and all provinces I was threaten many times by Taliban members and in the future I’m in much problems because their members have said me by telephone that you must go out from Afghanistan immediately. If you stay we’ll kill you, so help me to save my life, just give me a chance to have travel your country and find food for our children

  9. مه از طرف دشمنایم تحدید میشم و دشمنانم در گرده طالبان است از شما درخواست پناهندگی دارم.پ،اگر کمکم کنید

  10. i need help. I am a busness men in afghanistan. I realy worry to live here. I want to canada.please . Help me.

  11. Mr.Bahadar Armani

    Hello
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  12. Iam nazifullah iam from afghanistan you hilp my.

    • May phone namber 0777919265

      • جواد یم د ننګرهار ولایت
        زه له تاسو څخه کومک غواړم
        دوشمندار مې له طالیبانو سره کار کوې
        او د ژوند کولو خطر مې ډير دې
        نو هیله کوم ژوند مې وژغوره

  13. Hi, my name is Farid ullah Abid from Afghanistan Khost Sabari, I graduated from high school and I have studied in university but now it’s so difficult for me and other to follow the university for second class, now I can not to go university because of dangerous aituation and also in the past I supported from afghan government by social media but when Taliban controled on afghanistan I was threaten many times by Taliban members and in the future I’m in much problems because their members have said me by telephone that you must go out from Afghanistan immediately. If you stay we’ll kill you, so help me to save my life, just give me a chance to have travel your country and find food for our children

  14. I see my life in afghanistan in dangeras so i can not to canteen my life in afghanistan for there i am can not to canteen my ejuection and imma for there i am wont to imagaerdet to othere cantrey

  15. My name is abdul habib i from afghanistan i liek good canada

  16. My name is abdul habib i from afghanistan i liek good canada my w on 0093774431800

  17. Hello sir!

    My name is Rafi  and my surname is sultan muhammad.i am resident of qurghayi district of laghman province I worked in medicine for tow  as  docter.Now the taliban are in our place.they  are threatening me that you have worked in the government as a docter.

    I am stil in danger and my family is in danger ,so my hope  from foreign  countries is  to save me and my family.

    Please give us a  visa to get red of this danger.my 4 brothers, 4sisters and my parents .my life is in great danger.: email:[email protected]com
    Phone:0787941968/0764456047

  18. Hi
    I am a doctor and my life is in dangers plz helpe me to migrat

    • Hello good time My name is Abdul Qudos, son of Abdul Jabbar. As you know, Afghanistan is facing a very difficult and dangerous situation. I don’t want any trouble for me and my family. I want to go to developed Canada and get everything right there.
      I hope to accept.
      Phon.+93764062485

  19. Hi, my father has worked in the United States of America and he has documents. We can go to Germany. We are very isolated here by the Taliban. If we don’t go to Afghanistan, our whole family will die every day. The Taliban are doing a lot of cruelty. They come to our homes and beat the children and women. It’s a life like this.
    This is my email adras [email protected]
    0779072192//0772293298

  20. Hi, my name is suliman father sid Ahmad shah from Afghanistan Khost Matoon, I graduated from high school and I wanted to take an exam to university but now it’s so difficult for me and other to follow the university and also in the past I supported from afghan government by social media but when Taliban controled the capital of afghanistan and all provinces I was threaten many times by Taliban members and in the future I’m in much problems because their members have said me by telephone that you must go out from Afghanistan immediately. If you stay we’ll kill you, so help me to save my life, just give me a chance to have travel your country and find food for our children this my nambr +93779065804

  21. Hi, most respectfuly, i beg to say that i have an urgent work to you.that i was a translator with britch army in afgnistan in helmand provence since in 2014. I worked with them for four months as a translator. I am also regester with them in L.S.U. Company that was belonge to the britch or Britana the capital of Uk.i know all my team or petrole comander like Copral,Kelrkey, Mr,jony
    Smage, all they were my boss.i was in Baschen camp in Helmind provence.now my life is very danger situation i cant live in afgnistan and i canot work also in afgnistan.the situation is very crizy for tronslator to spend time heare.so i want help from you guys to send invatation letter to go to Canida. Thanks.alot
    Ph.0093778727142
    Gmail address. Arifja[email protected]

  22. my name is Hikmatyar i am from of Afghanistan in nangarhar province i live in jalalabad city my job was in jalalabad municipality my job is finish and i want to go to Germany country here is my live in the Rick so i want come on in the Germany country

  23. Hi Dear my name is Hikmatyar i am from Afghanistan so my life in the risk i want to go Germany country
    thanks a lot of thanks

  24. سلام زه عبدالله د محمد شاپور ځوی یم زه عواڔم افعان نستان نه وځم ماته دلته خاطر دی ماته طالیبانو د وژلو گوخ کوی زه ده افعانستان ځانگڔو ځواکونو کی وظیفه درلودله زما پلار او ورور هم وه وس موږ ته خاطر دی زه عواڔم ماته ستا سو هیواد کی پنا راکڔی ژوند می دیر گوخ سره مخامح دی کور

  25. سلام زه عبدالله د مخمد شاپور وی یم زه عواڔم چی مهاجر شم زما ژوند په خاطر کی دی کله چی افعانستان ته طالیبان ته را ننوتل زما یو ورور راته وژل او ماته هم مرگ گوح کوی زه عواڔم چی ماته ستاسو په هیواد کی پناه راکڔی زما کور نی ته حاطر او زما ځان ته حاطر دی هیله کوم ماته پناه راکڔی

  26. Hi, I want your country to be a serious threat to me and my family in terms of human and human rights.  You know from the Taliban that our country, Afghanistan, is in a very bad situation at the moment.  Our rights are not protected in it.  Thank you for getting us out of this country as soon as possible. And I was an Afghan National Army soldier. I was also given a warning letter by the Taliban.

  27. Hello, I want your country to be a serious threat to me and my family in the light of human and human rights. You know from the Taliban that our country Afghanistan is in a very bad situation in the current situation. Our rights are not protected in it. Thank you for taking us out of this country as soon as possible.

  28. My name is Momin son of samiullah Iam from Afghanistan I am in bad state
    Please help me
    0767658115
    [email protected]

  29. Hey, I want Sajid Khan, my country is a serious threat to the human and human rights. You know you from the Taliban that our country, Afghanistan will now be in the very poor condition. Our rights are not secure in it. As soon as possible to get out of this country thanks outside this country. I want to continue our family and I will continue a clearly life

  30. +93773807016

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      Start date: 2011
      Date of Birth: 1371/04/24
      Father name: Rahmat Gul
      Gender: Male
      Marital Status: Married
      Last name: Kamawal
      Tazkera No: 1400-0305-36836
      Job Location: Kandahar, Uruzgan, Mazar, kunduz, Baghlan, Sarepul,Nangarhar,Logar,jozjan and
      Job Title: Soldier of Afghan CommandoLewa 3, Kandak 8, tolay 2.
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      End date: 2021
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      As a Soldier of Afghan Commando I am Rahat GulS/O Rahmat Gul. I am from Nangarhar
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      Marital StatusMarried
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      Educational Background:
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      Date of birth 1371
      I am young, energetic and potential, under qualified and keen to seek
      knowledge, a leader and initiator. I am eager to try myself. I have a strong
      Native LanguagePashto
      Present add Kamadistrict, Nangarhar, province, Afghanistan.
      F/NameRahmat Gul
      Work Experience
      Name Rahat Gul
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      Graduated from 8
      Place of birthKamadistrict, Nangarhar, province, Afghanistan.
      Workedas a Commando soldier of Afghanistan for about ten years from 1390
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      oMs Excel 7 up to2019
      oMs Access 7 up to 2019
      oInternet
      DariExcellentExcellentExcellent
      Language Skills:
      oMs Word 7 up to 2019
      oMs Windows 7, 8.1, 10
      LanguageReadingWritingSpeaking
      PashtoNativeNativeNative
      References
      oMs Powerpoint7 up to 2019
      Englishgoodgoodgood
      Reference will be provided if needed.

  31. Name: Rahat Gul
    Place of Birth: Kama, Nangarhar, Afghanistan
    Start date: 2011
    Date of Birth: 1371/04/24
    Father name: Rahmat Gul
    Gender: Male
    Marital Status: Married
    Last name: Kamawal
    Tazkera No: 1400-0305-36836
    Job Location: Kandahar, Uruzgan, Mazar, kunduz, Baghlan, Sarepul,Nangarhar,Logar,jozjan and
    Job Title: Soldier of Afghan CommandoLewa 3, Kandak 8, tolay 2.
    Email:
    Cell phone: 0093773807016
    End date: 2021
    Nationality: Afghan
    Kabul.
    Home Address: Kama, Nangarhar, AfghanistanAug 25/2021
    fearfor me and my family safety should it be discovered by members of Talibaan militant in my
    threat from Talibaan, Daish and people of my village so they are thinking I am not a Muslim
    Rahat Gul
    Province. I have worked as a Commando of Afghanistan for about ten years. I am constantly in
    community that I have worked my service for the Ex-government of Afghanistan. I have received
    As a Soldier of Afghan Commando I am Rahat GulS/O Rahmat Gul. I am from Nangarhar
    violence and we live with very real possibility that militant forces will be used against us at any
    timeby extremists in our community. My family and home is in high risk, I am receiving threat of
    deathand brutality because of my service to my country Afghanistan in order to protect myself
    To whom it may concern:
    and myfamily, I select random routes to and from work so that no pattern to my life can be
    Now I can’t livein my village, so I come to center of Kabul, so please help me for processing of
    Should my job ever be discovered, my family and I will be subjected to harassment and physical
    my case and save mylife and my family life.
    becauseI have worked for Ex-government of Afghanistan.
    established byTalibaan, this threat is still ever present in our ives and hard for me and my family.
    Signature: …………………………………………..To: ( Italy Embassy )
    From: Rahat Gul
    Subject: ( Threat in Afghanistan )
    Dear sir/Madam:
    has occupied Afghanistan I left my job. Now I am at risk because I have worked
    in ex-government of Afghanistan. Now Talibaan want to catch me and kill me.
    my documents, for your further information
    As you announced nationalities for Afghanistan people who are in threat so I
    want to go to Italy to live in peace. I have attached a copy of my CV and also
    Looking forward for your positive act in response!
    I was a Commando soldier in Afghanistan for about ten years. Because Talibaan
    Sincerely yours
    Rahat GulObjectives:
    desire for social services and want to spend my whole life in serving mankind.
    Gender Male
    Marital StatusMarried
    My prime obsession is to work in an organization that offers a creative, dynamic
    NationalityAfghan
    Cell phone #: +93 (0) 773807016+93 (0) 787334274
    Educational Background:
    and professional environment where I can fully utilize my education, training,
    Personal Information:
    thclass in bazed khel high school kama, Nangarhar in 1388.
    professional skills and proven abilities and which also offers learning
    Age 29
    Date of birth 1371
    I am young, energetic and potential, under qualified and keen to seek
    knowledge, a leader and initiator. I am eager to try myself. I have a strong
    Native LanguagePashto
    Present add Kamadistrict, Nangarhar, province, Afghanistan.
    F/NameRahmat Gul
    Work Experience
    Name Rahat Gul
    opportunity for my future career.
    Graduated from 8
    Place of birthKamadistrict, Nangarhar, province, Afghanistan.
    Workedas a Commando soldier of Afghanistan for about ten years from 1390
    to 1400.Computer Skills
    oMs Excel 7 up to2019
    oMs Access 7 up to 2019
    oInternet
    DariExcellentExcellentExcellent
    Language Skills:
    oMs Word 7 up to 2019
    oMs Windows 7, 8.1, 10
    LanguageReadingWritingSpeaking
    PashtoNativeNativeNative
    References
    oMs Powerpoint7 up to 2019
    Englishgoodgoodgood
    Reference will be provided if needed.

  32. my name is Redi Hassanzay i am a dentest i am now in afghanistan i want to go jurmany please help me my phone number 0093772206068 Email [email protected]

  33. my name is Redi Hassanzay i am a dentest i am now in afghanistan i want to go jurmany please help me my phone number 0093772206068 Email [email protected]

  34. بايد زه دجرمني هېواد تا زر تر زره مهاجر شم ځکه چې ما تا او زما کورنۍ تا خطر دی

  35. Hi, my name is Ikramullah Danish, father Delawer Khan and elder brother Abdul Hadi from Afghanistan Khost Sabari, I graduated from high school and I wanted to take an exam to university but now it’s so difficult for me and other to follow the university and also in the past I supported from afghan government by facebooke but when Taliban controled the capital of afghanistan and all provinces I was threaten many times by Taliban members and in the future I’m in much problems because their members have said me that you must go out from Afghanistan immediately. If you stay we’ll kill you, so help me to save and find food for our children( Whatspp 0093798409292

  36. Mohammad ghoes (hanfi)

    ما هم د کاناډايانو سره کار کړي دي ايميلونه يي را سره دي [email protected]
    [email protected]
    [email protected]
    [email protected]
    [email protected]
    [email protected]
    مګر وروسته ما ته هيڅ جواب نه دې راګړل سوي

    • Armanullah "Shtaman"

      I want to trevel to canada
      Mobail No 0093-765861278

    • Hashmat ullah sahar

      Name: Hashmat ullah sahar

      Father name: Omar khan

      Date of birth: (1995/03/05)

      Email address: [email protected]

      Phone number:0778222228

      ID number: 56410

      Passport number: 02477569

      Technical advisor
      Reporter
      Women’s rights activist

      General Director of TOSD Wahedullah ulfat
      +93 70 794 8383

      General Director of Zan TV
      Noorsha noorani
      0093779885080

      General Director of Women’s rights activist
      Palwasha Sahar
      0093771621028

      The gap between the people and the state has been bridged, the problems of the people have been addressed, the prosecution of the corrupt has been eliminated, coordination in the institutions has been established, the demands and criticisms of the people have been shared with the concerned agencies.

      We defended women’s rights and always conveyed their demands to the responsible authorities.

      Identify and reflect on reporting issues.

      I hope Afghanistan will give me a chance to leave so that I can live happily ever after. My life is in danger here.
      Thank you so very much. 🇨🇦

  37. نوم عبدالوهاب دپلار نوم نواب خان زه مین پاک یم دلته راته خطر دي غواړم کاناډا ته لاړشم

  38. dear .
    Mohammad Hosain
    I wsa a policeman in Helmand province.
    . I am angst my self and my family.
    I want to travel from Afghanistan for. my self and my son. daugther .and my wife plaese help me. I am compel. the
    condition is not good .
    سلام
    محمد حسین هستم در افغانستان من یک سرباز بودم . فعلا از طرف طالبان تهدید شدم
    جون دختر و پسرم . و خانمم در خطر هست . لطفا کمکم کنید . حالت اینجا برای من خوب نیست . تشکر

  39. Abdull wahid mohamad

    Hello, I am Soheil ‌ I am one of the employees of the Afghan government. I am now a fugitive from my homeland for the sake of my health.
    سلام ځه ډیر په بد حالت کی شپی او ورځی تیرم هیله ده چی کمک راسره وکړی

  40. Abdull wahid mohamad

    نوم عبدالواحد د کندز ولایت طالبان دولت سره په کار کولو تورن کری یم د کندز د حاکمیت روسته راپسی کو ته راغلی وو. وس مو ژوند په خطرکیدی هیله چه مرسته راسره وکری

  41. Im want canada im need may lif is dengar

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