Price skimming Flashcards
1
Q
Pricing
A
Pricing is the amount of money you want to value your product or service at
2
Q
What influences pricing
A
Quality Competitors Cost of production Market design Trends Technology
3
Q
Price skimming
A
Setting a high price at the launch of the product or service as some customers will pay that price, and then slowly lowering the price throughout the products life span
4
Q
How is price skimming
A
Using this method means you can maximise revenue at the high end of the market and then can lower prices so more customers are willing to buy the product and make more revenue
5
Q
What are the disadvantages of price skimming
A
Some customers may not want to pay high prices so the company’s sales may be down for the first couple of months
