Originality/value – The paper presents a novel conceptualisation of the subject. Practical implications – Advancement of theory will impact pricing paradigms. Research limitations/implications – The formalisation of the paradox and development of the conceptual model opens opportunities for a new research agenda in the future, which is highlighted as part of the study. It conceptually models the dilemma of service pricing and suggests a research agenda based on process and value, nature of service, competence and branding. Findings – The study elucidates paradoxical aspects regarding value perceptions, objectives, strategies, cost recovery, competition and systematic processes. A critique of extant literature underpins a theoretical pricing problem framework, a future research agenda, and a model of the pricing paradox. Design/methodology/approach – Methodology is of axiological, philosophical tradition – induction and inference, generalized concepts and theories. The purpose of this paper is to review contemporary knowledge in this field, highlighting en route the dilemmas of the consultancy pricing paradox. Purpose – Despite widespread demand for consultants and especially within the surveying profession, driving forces of service/pricing/quality are not fully understood and have received minimal research attention. The theoretical literature review methodology was employed in this research to answer the following question: what is the optimal pricing strategy should the marketer/decision-maker follow to achieve the firm goals? This study demonstrates the difference between the mentioned above (skimming and penetration) from different aspects. The right decision taken to determine the suitable price means the success of the product, which in turn, the success of the company through achieving its objective. On the other hand, avoiding the threat of competitors and leading the market through the high diffusion of the product are the main pros of penetration pricing. Gaining high profit in a short time and excellent customer's perception of the product quality is the most advantage of skimming pricing. Each type of these strategies has its merits and demerits.

Some circumstances and factors affect which one of these strategies should be adopted. Skimming pricing strategy and penetration pricing strategy are the most popular pricing strategy followed by companies for pricing a new product. Many pricing strategies were developed as a response to the market's needs. Adopting a pricing strategy becomes crucial in the current high-competitive environment.

Skimming pricing vs penetration pricing