Razor and Blades Model
Version 1.0.0 · Updated 2026-07-30
CORE DEFINITION
Selling the base product (razor handle/printer) at a loss or low price, and making long-term profits by selling consumables (blades/ink cartridges) at a high price.
SCAFFOLDING EFFECT
Reduce cognitive load
- Lock in profits: When doing business, think: What is your razor handle (entry point) and what is your blade (profit source)? If your product is one-time and has no 'blade', the business will be exhausting.
Anchor fast decisions
By selling the 'base carrier' at a low price (even at a loss) to establish user lock-in and switching costs, then continuously profiting from high-frequency, high-margin 'consumables'. The mechanism leverages the 'entry-continuation' structure of consumption: the one-time acquisition cost is high, but the marginal cost of repurchasing consumables is extremely low and stickiness is strong.
MINIMUM ACTION
In progress 0/3Practice this model in one real situation:
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Source support: Explicit
- en.wikipedia.orghttps://en.wikipedia.org/wiki/Razor-and-blades_modelverified
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