Razor and Blade Model

Definitions

1. A business model where the initial product is sold cheaply or at low margin to drive ongoing sales of complementary consumables, subscriptions, or repeat purchases. The classic example is razors followed by blades, but startups apply the idea to devices and platforms too.

   In plain English: A model where the initial product is cheap and the ongoing repeat purchases make the money.

   Example: "The hardware plan relied on a razor and blade model, with the margin sitting in recurring refill orders."

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