Skimming Pricing
Skimming pricing is a pricing strategy where a company sets a high initial price for a new product or service to maximize revenue from early adopters, then gradually lowers the price over time to attract more price-sensitive customers. It is commonly used in technology, electronics, and luxury goods markets to recoup research and development costs quickly. This approach leverages the product's novelty and perceived value to capture consumer surplus before competitors enter the market.
Developers should learn about skimming pricing when working on products with high innovation, limited competition, or significant upfront costs, such as software launches, hardware devices, or subscription services, to inform business strategy and revenue modeling. It is particularly relevant in agile or lean development environments where pricing adjustments are made iteratively based on market feedback. Understanding this concept helps in aligning technical features with pricing tiers and forecasting adoption curves.