Skimming pricing is a long-term pricing approach in which a company charges a low price for a new product to keep out competition and grab market share.

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Skimming pricing is a strategy where a company charges a high price for a new product initially to maximize profits from segments willing to pay more, before lowering the price over time. It is not about charging low prices to keep out competition.

Skimming Pricing Is a Long-Term Pricing Approach in Which a Company