In this video, we discuss Razor Blade model, how this business model works, examples, real life applications, and its disadvantages
Chapters
00:00 Introduction
01:00 What is a Razor Blade Business Model?
01:24 How Does it Work?
01:48 Razor Blade Business Model Example
03:13 Real Life Example
04:00 Crux of Razor Blade Business Model
05:03 Why customers keep buying?
06:56 Disadvantages
What is a Razor Blade Business Model ?
It is a pricing tactic that is used for increasing sales, where a specific goods is sold at loss whereas a paired consumable goods is sold at a higher price to generate profit.
Mechanism used in the razor blade business
– proprietary interface
– contractual terms
– consumer emotion
– consumer’s behavior.
Disadvantages of razor blade business
– Difficult to start a business using this strategy
– winners take the most
– high pressure for the industry to increase exponentially
– generate vast amounts of waste.
Youtube ➤ https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUw
Linkedin ➤ https://www.linkedin.com/company/wallstreetmojo/
Facebook➤ https://www.facebook.com/wallstreetmojo
Instagram➤https://www.instagram.com/wallstreetmojoofficial/