Skim pricing (or price skimming) is a strategy where a product is launched at a high price to target early adopters who are willing to pay more. Over time, the price is gradually lowered to reach broader market segments.
Why it matters for startups
Skim pricing helps startups maximize early revenue, recover development costs, and position their product as premium or innovative. It’s especially useful when entering the market with something new or unique—but timing and execution are key.
What’s the goal of skim pricing?
To maximize revenue from early adopters before lowering prices to attract more price-sensitive users.
How is skim pricing different from penetration pricing?
Skim pricing starts high and lowers over time. Penetration pricing starts low to quickly gain market share.
What types of startups benefit from skim pricing?
Startups in tech, hardware, or premium consumer goods—especially those with a strong brand or clear innovation edge.
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