Pricing Plan

Skimming the market is a term used to describe a product that is originally priced very high but then after it has been on the market for a while the cost comes back down to a more reasonable cost. There are tons of products that do this on a regular basis, some more so than others. Here are a few that come to mind when I think about it. The sony PS3 was originally 499 dollars but is now down to 299, the ipad is currently selling at a very high price, but once the novelty wears off it will drop, xbox360, the new Panasonic 3d TV and many other things are all guilty of price skimming. It is a smart strategy because it forces people to pay more for something they really want and will fork out for. I feel like it only works for more expensive products because skimming a cheap one simply won't make a difference.

Here's a picture of the new Panasonic 3D TV, which is currently skimming the market.