"Free gift" redirects here. For the common example of tautologies, see Tautology (language). For the historical English tax, see Benevolence (tax).
A razor with its attached blade. With the razor and blades model, the razor would be inexpensive but the blades would come at a significant cost.
The razor and blades business model[1] is a business model in which one item is sold at a low price (or given away for free) in order to increase sales of a complementary good, such as consumable supplies. It is different from loss leader marketing and free sample marketing, which do not depend on complementary products or services. Common examples of the razor and blades model include inkjet printers whose ink cartridges are significantly marked up in price, coffee machines that use single-use coffee pods, electric toothbrushes, and video game consoles which require additional purchases to obtain accessories and software not included in the original package.[1]
Although the concept and the catchphrase "Give 'em the razor; sell 'em the blades" are widely credited to King Camp Gillette, the inventor of the safety razor, Gillette did not in fact follow this model.[1][2]
^ abcMartin, Richard (2001-08-06). "The Razor's Edge". The Industry Standard. Archived from the original on 2008-09-12. Retrieved 2008-08-01.
^Picker, Randal C., The Razors-and-Blades Myth(s) Archived 2017-06-22 at the Wayback Machine (September 13, 2010). U of Chicago Law & Economics, Olin Working Paper No. 532. Available at SSRN: https://ssrn.com/abstract=1676444 or https://dx.doi.org/10.2139/ssrn.1676444
and 26 Related for: Razor and blades model information
The razorandblades business model is a business model in which one item is sold at a low price (or given away for free) in order to increase sales of...
Safety razorblade life may be extended by drying the blades after use. Salts from human skin also tend to corrode the blades, but washing and carefully...
razor is a bladed tool primarily used in the removal of body hair through the act of shaving. Kinds of razors include straight razors, safety razors,...
business models have become much more sophisticated. The bait and hook business model (also referred to as the "razorandblades business model" or the...
period grouped into one generation. The industry has developed a razorandbladesmodel: manufacturers often sell consoles at low prices, sometimes at a...
safety razor with replaceable blades. These new safety razors did not require any serious tutelage to use. The blades were extremely hard to sharpen, and were...
management measures in their devices (see Razorandbladesmodel). Some manufacturers have introduced new models featuring continuous ink systems. This was...
double-edged safety razor, with cheap disposable blades sharpened from two sides. It took him until 1901 to build a working, patentable model, and commercial production...
than equivalent cartridge printers, which often follow the razor and bladesmodel of selling the printers at or below cost to generate later sales of proprietary...
Android, and iOS devices. Xbox games can also be played using the Xbox Cloud Gaming streaming service. Microsoft has used the razorandbladesmodel to sell...
up to 90%, to win the multi-year stream of spares and services, resembling the razorandbladesmodel. Engines installed on a new aircraft are discounted...
surrounded himself with industry-savvy advisors. A believer in the razorandbladesmodel, he developed a four-point plan: cut the price of the console, create...
Rolls Razor Limited was a British company known first for its manufacture of a sophisticated safety-razorand later, under new ownership, an "affordable"...
the price of the (proprietary) ink cartridges (a profit model called the "razorandbladesmodel"). Most current inkjet printers attempt to enforce this...
I oriented my razorblades ... N. and S. by the compass ... they tend to last considerably longer" and "The idea of keeping razorblades in a magnetic...
had been president of Mattel and did not have much experience in video games but recognized the razorandbladesmodel, and developed a new strategy for...
market. This razorandbladesmodel of sales would change little for several decades. Larger facilities were soon needed in Rochester, and the construction...
to shoot a light 2 miles (3.2 km) high) and a bridge modeled on Boston's Longfellow Bridge. The lighthouse and bridge are now featured on the stadium's...
long-standing impacts on the video game industry. Nintendo used the razorandbladesmodel to sell the console at near manufacturing cost while profiting from...
(also known as the dry razor, electric razor, or simply shaver) is a razor with an electrically powered rotating or oscillating blade. The electric shaver...
blades made rapid gains in market share because one blade, though somewhat more expensive, could be used for a week. The earlier carbon steel razor blades...
Global Information