1. Innovation comes at a cost. If you are going to bring a unique product, you need to invest in R&D, think out of the box and take a risk of launching the new product. When you are doing all this, you would off course keep the price of the product high to get the benefits in return. Hence, many companies which are innovative will use the skimming price strategy. Skimming pricing is used when a product, which is new in the market or just launched, is sold at a relatively high price because of its uniqueness, benefits to customers or its current Wow factor. However, slowly but surely when the product gets older in the market, then the price is dropped and the product is brought at competitive pricing.