Razor And Blade Business Model

Описание к видео Razor And Blade Business Model

The razor and blade business model is a strategy that relies on selling what is supposed to be the primary product at a low price or given away for free; while complementary goods get sold at high margins. For instance, Gillette’s razor would cost a few bucks. Instead, a set of blades will be 3-4 times more expensive. Companies like Apple, instead, follow a variation of that, called reverse razor and blade where the core product (the iPhone) is sold at a wide premium, and the ancillary products/services (apps) are mostly free, or inexpensive.

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