Guys, we all know about companies which produced new products or inventions and charged extremely high prices for the products. Now a company has offered to take people to space on short visits and will be initially charging a price of $200,000 per person. That firm is the Virgin Galactic, belonging to the Virgin Group of Companies. So, all this proves that a firm does not have to produce a unique product in order to do price skimming. If a firm is providing a unique experience to the consumers and if people are prepared to pay a high price for that service, then nobody can stop that firm from carging a high price. Check out this product idea of Richard Branson and do give feedback.
http://www.economist.com/sciencetechnology/displayStory.cfm?story_id=15063912
Sunday, December 20, 2009
Subscribe to:
Post Comments (Atom)
1 comments:
Hassan i would like to add something to this excellent post of yours that the high price charging in skimming is mainly due to a lot of expenditure of the company on developing the product in the product development stage before introduction( Recovering costs by higher price).
Very useful addition brother. keep it up.
Post a Comment