![]() The company adopts a skim pricing strategy and sets its skim price at P1 to recover research and development expenses. Related: How much does a game designer make and what are their skills? Innovative service skim pricing exampleĬompany T is a phone manufacturer that recently developed a proprietary technology for its devices. ![]() They lowered PS3's price every year, reaching £249 when discontinued. Sony had priced the PS2 conservatively, but they expected the PS3 to have many potential buyers and set a higher initial launch price. For example, the company launched the PlayStation 3 console at £425 per console, expecting high sales because of the success PlayStation 2 enjoyed. Sony uses the price skimming strategy in their gaming console lineup. They offer price cuts a few months later to attract the masses. ![]() It can generate considerable interest in its innovative products to lure early adopters. AFG Technologies consistently follows a skim pricing strategy with its new phones. The company dropped the price of its 8GB model to £499 two months after its initial launch. Its launch price was £599 for the 4GB model and £899 for the 8GB model. The company developed an innovative phone that generated some buzz. Here are examples of price skimming: Phone manufacturer price skimming exampleĪFG Technologies is a phone manufacturer. The companies charge a higher rate for their exclusivity, then lower the price when competitors reproduce the technology or designs. They implement it when they develop new technology or designs. Businesses selling high-tech or fashion products often use this pricing strategy. These companies can gradually lower the products' costs to attract price-sensitive customers. Price skimming, also called skim pricing, is a pricing strategy that organisations use to set higher prices for products entering the market. View more jobs on Indeed View more What are examples of price skimming?
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |