Price Skimming Definition: How It Works and Its Limitations
By A Mystery Man Writer
Description
Price skimming is a strategy where a company will list a product as high as possible, gradually lowering the price until it meets a market average.
![Price Skimming Definition: How It Works and Its Limitations](https://static.javatpoint.com/business/images/payment-in-kind.png)
Payment-in-Kind (PIK): What It Is, How It Works, Pros and Cons
![Price Skimming Definition: How It Works and Its Limitations](https://static.javatpoint.com/business/images/distribution-channel.png)
What Is a Distribution Channel in Business and How Does It Work
![Price Skimming Definition: How It Works and Its Limitations](https://static.javatpoint.com/business/images/payment-in-kind2.png)
Payment-in-Kind (PIK): What It Is, How It Works, Pros and Cons
![Price Skimming Definition: How It Works and Its Limitations](https://static.javatpoint.com/business/images/sine-wave.png)
Sine Wave - JavaTpoint
![Price Skimming Definition: How It Works and Its Limitations](https://static.javatpoint.com/business/images/liquidity2.png)
Understanding Liquidity and How to Measure It - JavaTpoint
![Price Skimming Definition: How It Works and Its Limitations](https://static.javatpoint.com/business/images/liquidity.png)
Understanding Liquidity and How to Measure It - JavaTpoint
![Price Skimming Definition: How It Works and Its Limitations](https://static.javatpoint.com/business/images/accumulated-earnings-and-profits.png)
Accumulated Earnings and Profits - JavaTpoint
![Price Skimming Definition: How It Works and Its Limitations](https://cdn.jwplayer.com/v2/media/z8hHIOjQ/poster.jpg?width=720)
Penetration Pricing Definition, Examples, and How to Use It
![Price Skimming Definition: How It Works and Its Limitations](https://static.javatpoint.com/business/images/law-of-diminishing-utility.png)
Law of Diminishing Marginal Utility - JavaTpoint
![Price Skimming Definition: How It Works and Its Limitations](https://static.javatpoint.com/business/images/what-is-price-discrimination.png)
What is Price Discrimination - JavaTpoint
![Price Skimming Definition: How It Works and Its Limitations](https://www.investopedia.com/thmb/0sJ7rdrBwH4k2A31KDRW_q_U91I=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/penetration-pricing.asp-final-7450fee7e6a84718b1b85ede11d48db7.png)
Penetration Pricing Definition, Examples, and How to Use It
![Price Skimming Definition: How It Works and Its Limitations](https://static.javatpoint.com/business/images/price-skimming4.png)
Price Skimming Definition: How It Works and Its Limitations
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