Razor and blades business model: Difference between revisions
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king c. gilette, his real name |
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The '''razor and blades''' [[business model]] works by selling a "master" product at a subsidised price, and making the profit on high margin "consumables" that are essential to the use of the master product. |
The '''razor and blades''' [[business model]] works by selling a "master" product at a subsidised price, and making the profit on high margin "consumables" that are essential to the use of the master product. |
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This business model can be dated to [[King Gilette]], who invented the idea for the original example of razor handles and disposable razor blades. This business model continues to be used in the disposable razor blade business to this day. |
This business model can be dated to [[King C. Gilette]], who invented the idea for the original example of razor handles and disposable razor blades. This business model continues to be used in the disposable razor blade business to this day. |
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Other examples include: |
Other examples include: |
Revision as of 12:35, 12 September 2002
The razor and blades business model works by selling a "master" product at a subsidised price, and making the profit on high margin "consumables" that are essential to the use of the master product.
This business model can be dated to King C. Gilette, who invented the idea for the original example of razor handles and disposable razor blades. This business model continues to be used in the disposable razor blade business to this day.
Other examples include:
- computer printers and their ink cartridges
- games consoles and the games they play