Is price skimming legal?

Asked 2 years ago

I can understand why using price skimming could be advantageous, but it also seems a bit unethical. This has me wondering whether it is illegal?

Price skimming Legalities Pricing strategy Product prices

Edward Dodson

Tuesday, February 22, 2022

Price skimming means setting a high price of a newly launched product at the start and then reducing the price afterward to target price-sensitive customers. It is a psychological technique to make the general impression of something incredible about the product.
Price skimming is not illegal but may cost your buyers' trust if the product bought at high initial prices is not worth it. Also, most people refrain from buying the new product and wait until the price decreases. It can cause potential buyers' loss at the beginning of the product launch.