It offered a suggested sales price of $ 130 for the essence of facial treatment.10 The allocation of skimmed market prices has several purposes; As you should provide healthy profit margins, it is planned in principle to recover research and development costs as soon as possible. The highest prices can be applied to connote high quality. It is likely that the allocation of skimmed market prices restricts demand at levels that do not exceed the company’s production capabilities. Finally, it provides flexibility to the company, because it is much easier to lower an initial price that runs up with consumer resistance to upload it if it has been too low to cover costs. Even though the price can be gradually lowered, the high initial prices associated with the skimmed of the market are white criticism of consumers and government officials. The allocation of skimmed prices of the market is convenient under the following conditions: • •
That the new product has distinctive features widely desired by consumers. That the demand is quite consistent, which usually occurs in the early stages of the life cycle of a product. In this situation, it is unlikely that low prices will generate great total income. That the new product is protected from the competition by one or more input barriers, as a patent.
MGM Mirage is the owner and operates 24 hotels and casinos in Michigan, Mississippi and Nevada. To attend to various segments of tourism and games markets, MGM Mirage has more than ten different properties in Las Vegas, including Bellagio, Circus Circus, MGM Grand, Mirage, New York-New York and Mandalay Bay. The Bellagio has as a goal of very exclusive clients who seek luxury and special attractions (the Bellagio has its own art gallery) and in this way it has used an allocation of poor market prices.
The spreading of the market is used for various products, notably for the allocation of new technological goods, such as high-definition flat screen televisions. Some new hotels and vacation centers, such as Four Seasons hotels, use the allocation of poor market prices. And in a very different bouquet, the original price of the vision correction procedure LASIK was more than 2,000 dollars for each eye. However, due to the growing competition, LASIK prices began to fall.