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.