The slides from February's Pricing Strategies discussion are posted below. Please let me know if you have any questions and enjoy.
Dan DeVries email@example.com
Interesting stuff. Shame I missed this one.... Unfamiliar with the term 'Skimming Strategy' - what does that mean?
Hi Jon - companies often use "price skimming" when launching a new, innovative product into the market. They charge top dollar looking to maximize profits from "early adopters." I bought a new Toyota FJ Cruiser when they first came on the market. I thought they were cool and wanted one. Supply was low and demand was high. Price was not an issue. Now they are much lower in price as the novelty has worn off.
Sometimes - companies don't get it right. Case in point is Apple's initial launch of the iPhone at $599. Two months later they lowered it to $399 and sent rebates to customers.