Satir Workshops a razor blade business?
November 5, 2009 § Leave a comment
Only a few companies have ever been successful selling one product or service into one market for its entire existence. When prices drop, or the market is saturated, or the economy comes to a grinding halt, usually new markets or new products or services are sought. Alternatively, revenues can also be increased by selling a series of related products and services. The razor and blades approach.
The razor and blades model is the concept of either giving away a salable item for nothing or charging an extremely low price to generate a continual market for another, generally disposable, item.
Scratch that itch!
January 18, 2006 § Leave a comment
Many business people seem to believe that open source software is not “professional,” e.g. that it is more prone to fail than closed software. Take a trip into the past … read about reliability of open-source software in “The Cathedral and the Bazaar“.
The cathedral and the Bazaar paper was behind Netscape’s innovative decision to take its client software open source. It describes a bazaar style of software development strategy that depends on open source and leads to high reliability and quality