Skimming pricing is a strategy where you launch with a high price to target early adopters who are willing to pay a premium. Over time, you gradually lower the price to reach broader segments of the market.
Why it matters for startups
This strategy works well for innovative or tech products with a unique edge. It helps maximize early margins, validate value, and position your brand as premium—before scaling to mass market. Investors often see skimming as a smart monetization strategy if your product is ahead of the curve.
Why would a startup use skimming instead of starting low?
To signal premium value, recover costs quickly, and focus on early adopters who can validate the product.
How do I avoid upsetting early customers when lowering the price later?
Offer loyalty rewards, early access to new features, or grandfather pricing to keep them engaged and appreciated.
Is skimming risky in competitive markets?
Yes—if competitors can copy or undercut you quickly. Use skimming when you have a clear innovation advantage or limited alternatives.
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