SKIMMING

Definition

Skimming, or "skimming pricing" in English, is a launch strategy that involves setting a high initial price for a new product and then gradually lowering it over time. The idea is to first attract customer segments willing to pay a premium (early adopters, novelty seekers, professionals) before moving on to segments that are more price-sensitive. This approach is particularly common in industries where innovation is a key selling point (high-tech, premium cosmetics, fashion).

Why it's important

• Maximize the initial margin: during the window when there is no direct competition, while the product is still the only one of its kind on the market.
• Quickly recoup the investment: Conduct R&D and launch the product before competitors offer alternatives.
• Building a premium image: one that will carry over to future versions, even when the price goes down.

A concrete example

A smartphone manufacturer launches a new high-end model priced at €1,299 in September. This pricing targets early adopters who are tech enthusiasts. Six months later, the price drops to €1,099 to broaden the target audience to include interested buyers who had been waiting. Twelve months after launch, the price drops to €899 just as the next model arrives. Over the entire product lifecycle, the average margin is significantly higher than what a penetration price of €999 at launch would have yielded.

How to measure/use it

Skimming requires three conditions for success: genuine product differentiation (without which the high price is quickly challenged), an initial pool of solvent and patient customers (early adopters, professionals), and the ability to adjust the price over time without undermining the trust of early buyers. The timing of price reductions must be carefully considered: if reductions happen too quickly, they frustrate early adopters; if they happen too slowly, competitors will take over the market. Analytics tools make it possible to model several scenarios for price reductions.

Common Mistakes

• Skimming the market without any real differentiation: the high price is immediately challenged, and the launch fails.
• Cutting prices too quickly: Early buyers feel cheated, and the brand loses credibility.
• Don't overlook the competitive response: a competitor that launches an alternative that's 30% cheaper could derail the strategy along the way.

Learn more

• Research & Data: Price analysis to assess the effectiveness of a skimming strategy in your market.
• Solutions: Pricing Analytics to model the optimal price reduction schedule.
• Tip: Develop a pricing strategy to structure the launch and the pricing lifecycle.
• Resources: See our pricing FAQ to learn the difference between skimming and penetration.

Mini FAQ

Which sectors are suitable for skimming?

Primarily sectors where innovation creates strong perceived value: consumer electronics, automotive, premium cosmetics, and premium services. In the mass-market consumer goods sector (food, household products), skimming is rarely relevant.

How long can we keep the price high?

Between 3 and 12 months, depending on the category. In the high-tech sector, this timeframe is reduced to 6–9 months due to competitive pressure. In the premium cosmetics sector, it can extend to 18 months for true innovations.

Is skimming compatible with brand image?

Yes, but proceed with caution. A price reduction that isn't communicated effectively can damage your brand's image. Best practices involve linking the price reduction to a change in the product lifecycle (a new version, the end of the season), which naturally justifies the new pricing.