Price Skimming

Launching at a high price to capture early adopters, then lowering it over time, described by economist Joel Dean in 1950.

By Brandon MinaCEO, BrandPilot AIUpdated November 2026

Short answer

Price skimming is the strategy of launching a product at a high price to capture early adopters willing to pay more, then lowering the price over time to reach broader segments. Economist Joel Dean described it in 1950. It suits innovative products with limited competition, and it helps recover development costs early.