BROWSE

Razor-Razorblade Model

What is the 'Razor-Razorblade Model'

The razor-razorblade model is a business tactic involving the sale of dependent goods for different prices - one good is sold at a discount, while the second dependent good is sold at a considerably higher price.

Explaining 'Razor-Razorblade Model'

If you've ever purchased razors and their replacement blades, you know this business method well. The razors are practically free, but the replacement blades are extremely expensive.

The video game industry is another user of this pricing strategy. They sell the game consoles at a relatively low price, recouping the lost profits on the high-priced games.


Further Reading


Merger Control in Times of Financial Crisis: An Expedient Instrument to Heal the Fledgling Economy or an Object of Abuse?
papers.ssrn.com [PDF]
… British economist John Maynard Keynes, who explained the same in his classical work, The … present article performs a transatlantic and an inter-disciplinary study using law, economics … Financial Shock(FT Press 2010) 51 In the US, The Emergency Economic Stabilization Act of …

Emerging business models for the open data industry: characterization and analysisEmerging business models for the open data industry: characterization and analysis
dl.acm.org [PDF]
… British economist John Maynard Keynes, who explained the same in his classical work, The … present article performs a transatlantic and an inter-disciplinary study using law, economics … Financial Shock(FT Press 2010) 51 In the US, The Emergency Economic Stabilization Act of …

Economic and Legal AspectsEconomic and Legal Aspects
www.sciencedirect.com [PDF]
… British economist John Maynard Keynes, who explained the same in his classical work, The … present article performs a transatlantic and an inter-disciplinary study using law, economics … Financial Shock(FT Press 2010) 51 In the US, The Emergency Economic Stabilization Act of …

The new break-even analysis: it's time to expand the scope and assumptions of the traditional break-even analysisThe new break-even analysis: it's time to expand the scope and assumptions of the traditional break-even analysis
go.gale.com [PDF]
… British economist John Maynard Keynes, who explained the same in his classical work, The … present article performs a transatlantic and an inter-disciplinary study using law, economics … Financial Shock(FT Press 2010) 51 In the US, The Emergency Economic Stabilization Act of …

Chance or burden? A study of sustainable business models within the automotive industry: An empirical analysis of BMW Group and Volvo Cars GroupChance or burden? A study of sustainable business models within the automotive industry: An empirical analysis of BMW Group and Volvo Cars Group
www.diva-portal.org [PDF]
… British economist John Maynard Keynes, who explained the same in his classical work, The … present article performs a transatlantic and an inter-disciplinary study using law, economics … Financial Shock(FT Press 2010) 51 In the US, The Emergency Economic Stabilization Act of …

Tempest in a K-Cup: Red Flags on Green MountainTempest in a K-Cup: Red Flags on Green Mountain
meridian.allenpress.com [PDF]
… British economist John Maynard Keynes, who explained the same in his classical work, The … present article performs a transatlantic and an inter-disciplinary study using law, economics … Financial Shock(FT Press 2010) 51 In the US, The Emergency Economic Stabilization Act of …

Метафорическое моделирование финансово-экономических терминов METAPH ORICAL MODEL ING OF EN GLISH BUS INES TERMSМетафорическое моделирование финансово-экономических терминов METAPH ORICAL MODEL ING OF EN GLISH BUS INES TERMS
elibrary.ru [PDF]
… British economist John Maynard Keynes, who explained the same in his classical work, The … present article performs a transatlantic and an inter-disciplinary study using law, economics … Financial Shock(FT Press 2010) 51 In the US, The Emergency Economic Stabilization Act of …



Q&A About Razor-Razorblade Model


What is the business tactic called?

The business tactic is called the razor-razorblade model.

What does this business tactic involve?

This business tactic involves selling dependent goods for different prices.

Who uses this pricing strategy?

Video game companies use this pricing strategy.

How are razors and their replacement blades used in this pricing strategy?

Razors are sold at a low price, while their replacement blades are sold at a high price.

How can you tell if you've seen this pricing strategy before?

If you've ever purchased razors and their replacement blades, then you know about this pricing strategy.

Leave a Reply

Your email address will not be published. Required fields are marked *