1. Analyze the value of your product and the market's willingness to pay for it. You should determine the highest possible price that customers are willing to pay for your product.
2. Consider your competitors and their pricing strategies. Your pricing strategy should take into account what competitors are offering, so that your product stands out in the market.
3. Estimate the cost of development and marketing of your product. Taking into account the cost of production and marketing, decide if a price skimming strategy is the right option for you.
4. Examine the product lifecycle. Price skimming is most effective when the product is in the introductory stages of its life cycle.
5. Consider customer loyalty. If your customers are not loyal to your brand, then price skimming may not be a viable option.
Overall, price skimming can be a great way to quickly recover costs and maximize profits, but it is important to consider all of these factors before deciding if it is the right approach for your business. More details are to be found in the blog by
Priceva.