Explain the disadvantages of skimming price method?
1.This strategy can backfire if there are close competitors and they also introduce same
products at lower price then consumers will think that the company always sells the
products at higher prices which will result in consumers abandoning other products
of the company also.
2. Price skimming is not a viable option when there are strict legal and government
regulations regarding consumer rights.
3. If the company has history of price skimming then consumers will never buy a
product when it is newly launched, they would rather wait for a few months and
buy the product at lower price.