The "
razor and blades business model" is a
business model in which one item is sold at a low price (or given away) in order to increase sales of a
complementary good, such as
consumable supplies. While the model is named after razors, it applies to any business model using a durable item that needs consumable parts. It is different from
loss leader marketing and
product sample marketing, which do not depend on complementary products or services. Common examples of the razor and blades model include
inkjet printers whose ink cartridges are significantly marked up in price, coffee machines that use single-use coffee pods, electric toothbrushes, and
video game consoles which require additional purchases to obtain accessories and software not included in the original package. ==See also==