Glossary:Razor-and-blades business model
The razor-and-blades business model is the pricing strategy in which a basic commodity is sold cheaply but then needs to be serviced by expensive consumables. Current examples include printers and printer ink, coffee machines and coffee pods, games consoles and games, and mobile phones and usage contracts. The model is often attributed to Gillette, inventor of the safety razor, but was in fact introduced by his competitors.