Over the years, several companies

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Their razor handles were almost free. The replacement blades, on the other hand, were quite expensive. The strategy was very successful (and continues to be today, as owner Procter & Gamble keeps on doing it). After all, what can anyone do with a razor without a compatible blade? Instead of throwing it away and buying another one, most people did what the company expected: they bought blades when needed. The idea of ​​the razor and blade business model is precisely this: to avoid competition, offering a very cheap product in the first place, and guaranteeing consumer loyalty through related goods.


saw this business model as an opportunity for profit. An example buy south korea whatsapp number database is video games. Both Sony and Microsoft sold their consoles at a price below their cost. But its revenue came from gaming subscriptions, software-licensing agreements, and other related purchases. Of course, with the evolution of the market and technologies, other strategies needed to be included in the marketing game, so that companies could guarantee the effectiveness of this business model and, often, leadership in their field.


Trademarks and patents, for example, made a big difference throughout the operation. When patenting compatible consumable items, companies prevented competitors from selling products that matched their original core product. Especially because, if a competitor offers a consumable equivalent, and at a lower price, the whole strategy of the razor and blade business model goes down the drain.