Price skimming and penetration
Two new product pricing strategies are available: Price-Skimming and Market- Penetration Pricing. Let's learn more about these two new.
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Difference Between Penetration Pricing and Skimming Pricing
Pricing Strategies: Price Skimming and Penetration Pricing
If your business is planning to launch a new product, penetration pricing and price skimming are two marketing strategies you should consider.
Knowing the difference between penetration pricing and skimming pricing will help you to choose the best pricing strategy for your product.
Description:Price skimming occurs for example in the luxury car and consumer electronics markets. New Product Pricing — Price-Skimming vs. As against, due to high price of the product customer demand small quantity of the product, in case of skimming pricing. Although the low prices make each sale less profitable, the high volume results in lower costs and allows Ikea to maintain a healthy profit margin.
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