Skimming Price, Prestige Pricing, and Above Market Pricing; whats the difference?

 Both of these are examples of demand-oriented pricing approach. Both involve setting a product at a high price to attract consumers and increase revenue. the products marked at high price can be signified as new and improved or as a high end product. Yet while there are some similarity it is imported to know the difference between the two. 

Skimming Price  

Skimming pricing is putting a product at a high price point that consumers are willing to pay. such as when the first Apple Iphone came out the phone was set at a high price over the years the price lowered as the next version of the Iphone came out. Apples Iphones were set at the highest price consumers where willingly to pay.

Prestige Pricing

Prestige pricing is also putting a product at a high price point so status- conscious consumers are more likely to buy them. This is also a example of target marketing, marketing a products towards a specific consumer base. Many consumer these days care only about the brand there cloths are from and they think the higher the cost the better the product. To some consumers buying high price brands show better social status.

Above Market Pricing 

Above market pricing is when companies put their products at premium prices such as Dior, or Rolex. These company set a high price because they know there worth. Above marketing pricing is essentially just the pricing of a product. These prices are above the price of other similar products.