Cream skimming

Cream skimming refers to a business practice where a company decides to serve only customers who can add a substantial amount of profits to the company’s bottom line.

This means that companies may only serve customers who are willing to buy high-priced services or services which can be produced at a low cost. Low-value customers who cannot pay an attractive price for a product or choose only to purchase products with high production costs may thus be pushed out of the marketplace by companies. While the practice has been criticised as discriminatory, some have argued that low-value customers may still be served by other profit-seeking firms.