The skimming strategy, or when aiming high becomes (very!) profitable
What if aiming for the top was the best way to maximize profits? The skimming strategy (far from a classic pricing policy ) is based on a simple premise: set a high initial price for a product or service with high perceived value, even if it means reducing sales volume.
It's a business strategy that doesn't appeal to everyone... but can transform your company into a premium reference! In a competitive market, where every brand image makes a difference, price skimming becomes a double-edged sword, formidable when wielded correctly.
When higher prices sell better
In the collective imagination, a high price is off-putting. It excludes, restricts and slows sales. Yet some companies use this very bias to create a customer base willing to pay a higher price. Their secret? Top-of-the-range positioning, superior quality, and marketing designed to make the most of the difference. It's called the skimming strategy.
A marketing strategy that flies in the face of common sense... or almost.
Skimming consists of starting with a higher price (as soon as a new product is launched) in order to attract a small but solvent segment. With this deliberately high price positioning, you can :
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maximize your margin,
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reinforce brand image,
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create an exciting sense of exclusivity.
This choice is often part of an overall pricing strategy: first skimming prices, then gradually lowering them to reach a larger number. In other words, harvest the cream first, then broaden the spectrum. It's also an excellent lever for pricing based on perceived value, not cost. This reverse logic is winning over more and more sectors, including retail and vocational training.
From luxury to tech: aim high, aim right
We know the recipe from Apple, Louis Vuitton and certain e-commerce boutiques that capitalize on a strong image. These are brands that do everything to appear inaccessible, then cultivate this distance as a form of desire.
There's nothing random about this phenomenon: it's based on what's known as the Veblen effect. The more expensive, the more coveted. Customers pay not just for the product, but for the image, the status, the relationship with luxury. And in this logic, a price based on what the public wants to own is anything but absurd: it's profitable. Very profitable.
How does a skimming strategy work?
You don't need a degree in economics to understand the idea: sell more, sooner, to those who are willing to pay. But how does it work? How do you implement a skimming strategy that works, and lasts?
Definition: what is price skimming?
It's a marketing strategy! It involves launching a product at a high initial price. It's aimed at the most captive consumers. Those for whom the added value justifies a higher selling price. The aim is not to reach a large number, but to make a quick profit.
In other words :
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prices are set according to perceived value, not cost,
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capitalize on brand image,
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you immediately position yourself at the top of the range,
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we're already preparing to lower the price later.
It's a pricing policy thought out upstream, from the moment the price is set, and aligned with the product's life cycle. The target market? A small but strategic segment.
Implementation: conditions, sectors, good reflexes
Skimming can't be improvised. The brand must already be recognized, or perceived as innovative, rare or high-end. The product or service must be perceived as unique.
Sectors where it works :
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luxury, obviously,
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tech, often,
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training, increasingly so,
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certain capital goods,
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or even supermarkets, when you dare to display a price positioning that goes beyond the promotional aisle.
☝️ But beware: penetration strategy and skimming strategy, it's one or the other. Not both at the same time.
The stages of a well-oiled skimming operation
Nothing should be left to chance. Effective skimming is a precise process, with its own stages:
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Create a differentiating product.
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Set a high price right from the start.
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Attract the first customers (image, exclusivity, scarcity effect).
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Gradually lower the price, without damaging the image.
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Widen the target.
Each step is key. And every misstep can be fatal: too low a price blurs the message, too high a price without added value drives away customers. The key to success? Clear, assertive positioning, maintained over time. And above all: real coherence between product, image, price and promise.
Real-life examples of skimming... and what they teach us
Skimming isn't just for the glitz and glamour of luxury. It's a policy found in more cases than you might think. Some companies, sometimes far removed from luxury, use it to maximize their margins, assert their competitive edge, or test a model for moving upmarket. Here are three very different versions.
Notion, the app that charges... without imposing anything
With its ultra-flexible freemium model, Notion has established itself as an application that's both easy to access... and highly profitable. Behind the free version, widely distributed via social networks, lies a high-priced pro package designed for teams and companies.
Why does it work?
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the public isn't price-sensitive, it wants efficiency,
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the pro offer is perceived as a strategic resource,
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the service is maintained, complete and valued.
Maximizing benefits without forcing the hand, it's a discreet but highly effective skimming.
Respire, the DNVB that turns a deodorant into a manifesto
Clean products, French manufacturing, a committed community: Respire embodies the successful adoption of a soft-skimming model. Its cream deodorant, at €9 a jar, might seem anodyne... but its perception of value rests on powerful communication, well-thought-out creation, and a recognized image.
🎯 Its target market? Consumers ready to adopt a committed routine , not just buy a product.
Dyson: no promotions, no stock... and maximum desire
Dyson doesn't discount. Ever. And yet, its products sell at full price, even during periods of declining consumption. Why do they do this? Because everything is calibrated:
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the Veblen effect: what's expensive is attractive,
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a tense launch phase, with limited stocks,
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a reputation maintained by innovation, rarity and the total absence of knock-down prices.
This is no coincidence: it's a deliberate pricing strategy, backed by well thought-out pricing and total control of distribution policy.
Why this strategy is scary (and why we're wrong)
In the collective imagination, high prices are risky. At this stage, skimming is no longer a tactic: it's a gamble. And many companies refuse to attempt it.
Frequent blockages on the company side
My product doesn't deserve it.
My company isn't well known.
I'll cut myself off from part of my audience.
These phrases are often used, and they put the brakes on more than one project.
This reflex reflects several obstacles:
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fear of being perceived as too expensive or pretentious,
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doubts about the brand's legitimacy to charge a higher price,
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fear of being rejected head-on by the market or initial customers.
Result: self-censorship. Prices are lowered, products become commonplace, and security is sought. But is it really safer?
What we too often forget
A high price doesn't necessarily mean a barrier. It can, on the contrary, arouse desire. A price is a signal. It says that the product has value, that the brand has confidence, that the proposed experience is different.
Behind it lies a whole psychological game:
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authority: "if it's expensive, it must be good",
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social proof : "those who can afford it buy it, so can I",
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exclusivity : "few can afford it, I want it".
This is not manipulation. It's a strategic choice based on perception and desire. And it works. More often than you might think.
The (real) advantages and disadvantages of a skimming strategy
As we've seen, it's a divisive strategy. But when it's well executed, the results are there. And the benefits are right at hand.
Increased profitability, without chasing volume
Fewer customers... but higher margins. Less noise, but clear positioning! Skimming makes every sale profitable, without relying on massive volume. You sell better, not necessarily more.
It's a real lever for profitability, especially when :
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customer acquisition is costly
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resources are limited,
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the sales cycle is long.
We concentrate our efforts where they pay the most dividends. And that changes everything.
Strong differentiation in a saturated market
When everyone else is playing the low-price card, the one who dares to do the opposite stands out from the crowd. Skimming is also a radical differentiation strategy .
💡 Are you selling at a higher price? That's because you're better.
💡 Sell less? Then you're rare.
💡 Are you staying constant? Then you're on course.
In a saturated market, it's this consistency that's perceived as proof of quality! Brand enhancement, a more targeted audience, stronger brand awareness. Or how to turn positioning into a real and lasting competitive advantage!
Disadvantages not to be overlooked
Skimming can become a dead end if badly calibrated. Too expensive, too early, too pretentious: some products never took off because the promise was not credible.
Another pitfall: cutting yourself off from a wider audience. By targeting only customers with high purchasing power, you reduce the accessible market share... and expose yourself to increased competition in the high-end segments.
Finally, a rigid pricing strategy can quickly become a burden if the context changes:
- declining purchasing power,
- entry of new competitors,
- poor perception of value for money...
Conclusion? Skimming works, but it doesn't forgive approximation. Solid market research, clear positioning and offer/price alignment are imperative (to avoid the boomerang effect).
Skimming strategy: a lever for value... when well thought-out
Skimming is neither a marketing fad nor an unattainable luxury. It's a powerful business strategy, which maximizes perceived value, establishes a strong image and builds sustainable profitability. The key is to master the codes: timing, offer, price positioning, everything counts. Because if the promise doesn't deliver, the public is unforgiving. Conversely, a company that anticipates, observes, tests, adjusts... can succeed where others dare not. It's not a question of pretension, but of consistency. And sometimes, that's where real success lies.
Article translated from French