Setting a higher price for a product when it is newly launched, taking advantage of market demand, and then lowering or adjusting the price based on demand at a later stage is known as a "skimming" strategy.
We see this a lot with celebrity product launches or new product launches by a well-known brand. Early adopters are customers who are willing to pay a much lebanon telegram number database higher price for a product, whether that price reflects the true value of the product or not, in order to get the product when demand is high, usually at launch.
The prices of these products are then reduced to attract more price-sensitive customers. Therefore, for each customer segment, the company takes the maximum amount, taking the top portion of these customer segments.
Whether it's Rihanna's Fenty Beauty, Kanye's new clothing line, or the latest PlayStation, companies use "skimming" pricing to attract customers who not only pay for the product, but also want to be the first to use it. After a few months, the prices for these products usually drop.Dynamic pricing doesn’t have to be incredibly complex and confusing, but it does need to be strategic and streamlined. Over the past year, as consumers shop online for everything from groceries and soap to yoga mats and laptops, many people have been reminded of how easy it is to compare prices online. With just a few clicks, a shopper can find out which retailer is selling a specific item at the lowest price. And as the shift to e-commerce is expected to continue even in the post-pandemic era, pricing will become an increasingly important competitive tool for retailers. Dynamic pricing, in particular, is poised to become one of the key capabilities that will set apart the winners in the retail of the future.