Price Skimming
corporatefinanceinstitute.com/resources/management/price-skimming/
1 Users
0 Comments
6 Highlights
0 Notes
Tags
Top Highlights
the goal is to generate the maximum profit in the shortest time possible,
rather than to generate maximum sales.
This enables a firm to quickly recover its sunk costs before increased competition and pricing pressure arise.
A price skimming strategy tries to get the highest possible profit from innovators and early adopters.
where the firm is the first to enter the marketplace
Price skimming is used to maximize profits when a new product or service is deployed
Ready to highlight and find good content?
Glasp is a social web highlighter that people can highlight and organize quotes and thoughts from the web, and access other like-minded people’s learning.