The Pricing Strategy Matrix is a tool that assists businesses in determining the best price for a product or service by considering both price and quality and highlighting four potential strategic options. Skimming is a pricing strategy in which your price point is initially high in comparison to the quality of your product. The aim is to get as many consumers to buy it at the high margin price as possible before you start lowering it. When you reduce the price point, you are targeting a different segment of the market that is willing to pay the new amount. Skimming can maximize revenue from a small number of customers during product or service launches.
