The Razor and Blade Model, also known as the Razor and Razorblade Model, is a business strategy where a company sells a complementary product (the "blade") at a low cost or even gives it away for free to stimulate demand for a related product (the "razor"). Metaphor. The model is named after the practice of selling razors cheaply to.. Razor and blades model. 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.
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Razor and Blade Business Model
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Razor and Blade Business Model
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The Razor and Blade Business Model is a business model in which a company sells a product or service at a low price (razor), then makes money by selling customers replacement parts or accessories (blades) at high prices. The business model was first introduced by King Gillette in 1901 and has since been used by many companies to create.. Examples of Razor and Blade Business Model. Razor and blade are among the oldest business models. Upon invention by Gillette, other businesses are adopting it. Procter & Gamble - the company behind the Gillette brand - uses this approach. The company offers free razors but makes a profit by selling disposable blades.
