Price Skimming
Apple’s new AR/VR headset is $3,500. It’s expensive on purpose.
Apple frequently uses a pricing strategy called "skimming". The idea is that you introduce new products at high prices to capture the portion of the market with a high willingness-to-pay. 12-18 months later, you then release a new version of the product and lower the price of the previous generation to capture your lower-willingness-to-pay customers.
If Apple started with a lower price, they would immediately sell more units, but to maximize profit, they “skim” at a high price first and then lower the price to grab the rest of their market.
If you were challenged to identify a way to use price skimming with your own product or service, how might you do it?