The skimming strategy, or when aiming high becomes (very!) profitable

What if aiming for the top was the best way to maximise profits? The skimming strategy (a far cry from a traditional 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 the volume of sales.

It's a commercial strategy that doesn't appeal to everyone... but it 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 used properly.

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When higher prices sell better

In the collective imagination, a high price is off-putting. It excludes, restricts and slows down sales. Yet some companies use this very bias to create a customer base that is prepared 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 :

• maximise your margin

• reinforce your brand image

• create an exciting feeling of exclusivity.

This choice is often part of an overall pricing strategy: skimming prices first, then gradually lowering them to reach a wider audience. In other words: first you pick the cream, then you broaden the spectrum. It's also an excellent way of establishing a price based on perceived value, rather than 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 capitalise 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 something is, the more it is coveted. The customer is paying 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 cream-skimming strategy work?

You don't need a degree in economics to understand the idea: sell more, earlier, to those who are prepared to pay. But what does it mean in practice? 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. You target the most captive consumers. Those for whom the added value justifies a higher selling price. The aim is not to reach a large number of people, but to make a quick profit.

In other words :

• We set a price based on perceived value, not cost,

• You capitalise on your brand image,

• you position yourself at the top of the range straight away,

• You prepare 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 recognised, or perceived as innovative, rare or top-of-the-range. The product or service must be perceived as unique.

Sectors where it works :

• luxury goods, obviously

• tech, often,

• training, increasingly so,

• certain capital goods,

• or even supermarkets, when you dare to display a price positioning that goes beyond the promotional aisle.

☝️ But be careful: penetration strategy and cream-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:

1. Create a differentiating product.

2. Set a high price right from the start.

3. Attract the first customers (image, exclusivity, scarcity effect).

4. Lower the price gradually, without damaging the image.

5. Widen the target.

Each step is key. And every misstep can be fatal: too low a price blurs the message, too high a price with no added value drives away customers. The key to success? A clear, assertive positioning, maintained over time. And above all: real consistency between the product, the image, the price and the promise.

Concrete examples of skimming... and what we can learn from them

Skimming isn't just for the glitz and glamour of luxury. It's a policy found in many more cases than you might think. Some companies, sometimes far removed from luxury, use it to maximise their margins, assert their competitive advantage, 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 is both easy to access... and highly profitable. Behind the free version, widely distributed via social networks, lies a high-priced pro package aimed at teams and businesses.

Why does it work?

• People aren't price-sensitive, they want efficiency,

• the pro package is seen as a strategic resource,

• the service is maintained, complete and valued.

Maximising benefits without forcing the hand is a discreet but highly effective way of skimming off the top.

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 trivial... but its perception of value is based on powerful communication, well-thought-out creation, and a recognised 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 when consumption is down. Why do they do this? Because everything is calibrated:

• the Veblen effect: what's expensive is attractive,

• a tight launch phase, with limited stocks,

• a reputation maintained by innovation, rarity and a total absence of knock-down prices.

This is no coincidence: it's a deliberate pricing strategy, backed up by well thought-out pricing and total control of the 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 enough.

I'm going to cut myself off from part of my audience.

These phrases come up often, and they put the brakes on more than one project.

This reflex reflects a number of obstacles:

• fear of being perceived as too expensive or pretentious,

• doubts about the brand's legitimacy in charging a higher price,

• fear of being rejected outright 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 does not necessarily mean a barrier. On the contrary, it can create desire. A price is a signal. It says that the product has value, that the brand has confidence, that the experience on offer is different.

There's a whole psychological game behind it:

• authority: "if it's expensive, it must be good",

• social proof : "those who can afford it buy it, so can I",

• 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 your fingertips.

Increased profitability, without chasing volume

Fewer customers... but higher margins. Less noise, but clear positioning! Skimming allows you to make every sale profitable, without relying on massive volumes. You sell better, not necessarily more.

It's a real driver of profitability, especially when :

• customer acquisition is costly

• resources are limited

• the sales cycle is long.

You concentrate your 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 seen 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 it's badly calibrated. Too expensive, too early, too pretentious: some products have never taken 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 top-of-the-range segments.

Finally, a rigid pricing strategy can quickly become a burden if the context changes:

• falling purchasing power
• the entry of new competitors
• poor perception of value for money, etc.

Conclusion? Skimming works, but it doesn't forgive approximation. Solid market research, clear positioning and alignment of offer and price are imperative (to avoid the boomerang effect).

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Skimming strategy: a lever for value... when it's well thought out

Skimming is neither a marketing fad nor an unattainable luxury. It's a powerful sales strategy that maximises perceived value, establishes a strong image and builds sustainable profitability. But you need 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 the real success lies.