What Is Skimming Price And Penetration Price?


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Skimming price ; When a product is launched and the company set the  high price for the product at the begining to gain all profit it mean skimming for example APPLE when introduced iphone they set its price very high it was to skim all the profit and the peoples who could afford were willing to pay for that product so by skimming pricing the company earn good profit at the begining of the proudct.
Penetration price: It is opposite of skimming. When a product is newly introduced to market companies sets low price for the product.their aim is to enter the market and get more share s of market. By which every one can buy the product and creates good image.
For example : Primark is London's famous shoPping centre. In that shopping centre there are many kinds of items. The company has set really low price for the products that every one could buy the product they have create a good image between its consumers and are earning low profit their aim is to gain more market shares.

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