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“Razor and blades” or “bait and hook” business models are both effectively the same thing, where you give something away for free or very cheap or perhaps even at a loss. These are the razor handle or fishing hooks in the metaphor. The goal is to get someone into your ecosystem so that they need to buy additional products such as razor blades or bait for the hook in order to continuously use the original object. One of the most common business models employed today works in such a way where companies profit by selling basic products at very low prices and margins and selling complementary products (e.g. refills or upgrades) with higher prices. The name is widely credited to King Gillette, founder of the Gillette Razor Company and inventor of the disposable safety razor. However, the razor and blade model is not Gillette’s initiative even though he was considered as its adoptive father. This model was very successful and it continues to strive even today. In fact, many companies have employed this model and garnered success. The concept is similar to the "freemium," in which digital products and services (e.g., email, games, or messaging) are given away for free with the expectation of making money later on upgraded services or added features. This Wikifolio contains a global selection of such “Razor and blades” companies.
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Stammdaten
WF000RAZOR
07.11.2022
-
142,2
Anlageuniversum
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