MANAGEMENT

Detailed explanation-1: -Also referred to as the “hi-lo” or “skimming” pricing method, high-low pricing is a common retail pricing strategy where a product (or service, in some cases) is introduced at a higher price point, and then gradually discounted and marked down as demand decreases.

Detailed explanation-2: -In price skimming strategy, a seller sets a high price for the product during the launch and then gradually decreases it. On the other hand, loss leader pricing is when a store prices its goods below the cost price to stimulate sales. Similar to price skimming, high low pricing starts out with a high price.

Detailed explanation-3: -Price skimming is a product pricing strategy by which a firm charges the highest initial price that customers will pay and then lowers it over time.

Detailed explanation-4: -High-low pricing is used extensively by major retailers such as Macy’s and Nordstrom and specialty companies such as Adidas and Nike. They set prices high but then periodically offer consumers lower prices through sales, promotions or coupons.