As a marketing tactic, "price skimming" entails charging a premium for a new product or service just after it hits the market. Profits may be maximized using a pricing strategy known as "price skimming," which focuses on attracting early adopters and high-spending clients.This tactic is often used for niche yet in-demand, unique, or technologically sophisticated items. The company may make back its investment in R&D and turn a profit by charging a premium price for the product. Price skimming may trigger a negative reaction from customers who feel they are paying too much for a product or service.Therefore, organizations should assess the current market climate and client preferences before implementing a price-skimming strategy. Although price skimming may be a useful pricing strategy for companies with novel offerings, doing so successfully takes careful forethought and execution to avoid turning off consumers and undermining the company's marketing efforts as a whole.