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Tag: Razor-and-Blades Pricing

How a razor revolutionised the way we pay for stuff | BBC News

How a razor revolutionised the way we pay for stuff | BBC News

Two-part pricing is also known as the “razor and blades” model, because that’s where it first drew attention – draw people in with an attractively priced razor, then repeatedly charge them for expensive replacement blades. Before King Camp Gillette, razors were bigger, chunkier affairs – and a significant enough expense that when the blade got […]

Razor-and-Blade Model: What Is It? What Companies Have One? | Fox Business

Razor-and-Blade Model: What Is It? What Companies Have One? | Fox Business

Companies that have a razor-and-blade model use a pricing strategy that involves selling a durable product, or “razor,” at a low profit margin (sometimes even giving it away) to help drive sales of the higher-margin proprietary consumable or disposable products, or “blades.” The goal of companies that have this type ofbusiness model, which reportedly owes […]

Tesco cuts price of women’s razors so they cost the same as men’s | The Guardian

Tesco cuts price of women’s razors so they cost the same as men’s | The Guardian

Tesco has reduced the price of women’s standard razors to match that of men’s in the latest victory in the battle to eliminate gender discrimination in high street products. A newspaper investigation at the start of last year showed that women were paying an average of 37% more for gender-targeted items, ranging from toys to […]

Is the End Looming for Razor-and-Blades Pricing? | Strategy+Business

Is the End Looming for Razor-and-Blades Pricing? | Strategy+Business

Bottom Line: Companies might want to rethink the storied model of charging less up front to get more down the line — especially as e-commerce offers consumers ever greater flexibility, information, and selection. Way back in 1900, the Eastman Kodak Company rolled out its Brownie camera and brought the snapshot to the mainstream, along with […]