Razor and Blade Business Model

The Razor and Blade Business Model – also known as the bait and hook business model – is a very well established and famous business model around the world. Companies like Gillette, HP, Nespresso, and many others have been successfully using it.Have you ever bought a blade corresponding to the razor model you already had at home? So, this is exactly how this business model works: every time you buy the cartridge for your printer or the coffee capsule that fits in your coffee maker, you are participating in this strategy.A company employs the razor and blade business model every time it sells a starting product at a low cost, with the sale of related products later on.The first company to develop and implement this business model was Gillette. For this reason, it became known as “razor and blade”. Shall we go a little deeper into this?ContentsWhat is the razor and blade business model?The origins of the razor and blade business modelThe razor and blade business model canvasDownload FREE...