Tag: Pricing

Pros and Cons of Using Price Skimming

Pros and Cons of Using Price Skimming For Your Next Product Launch. Price skimming is a business strategy for pricing goods and services. When introduced to the market, the good or service is priced at a higher-than-usual price and then lowered incrementally over time. The “skimming” refers to skimming off of customers willing to meet a specific price point. Once a customer segment is satisfied/saturated, that segment is “skimmed” off. The price is reduced, and the next segment of buyers is revealed. In this article we will: Review pros and cons of using price skimming as a strategy Examine real-world examples of…

10 Reasons Why You Should NEVER Compete On Price

Here’s some top 10 reasons why you should NEVER lower your price to attract more clients, no matter what. Reason #1: Low fees attract low quality clients. You’ll attract those who are more concerned with price than they are with results. Oh yeah – those folks are definitely not FUN to work with either. Reason #2: Low fees repel high end, value focused clients. Not only do low fees attract the wrong type of clients, but they also actively push away the potential high paying clients that you’re eager to serve. Talk about a double disaster! Reason #3: Low fees…