Pricing & monetization · strategy atlas
Razor-and-blade model
what it means
Selling a durable base product near or below cost to build an installed base, then earning the real profit on a recurring consumable or accessory that only fits that base product.
a real example
Printer manufacturers, razor brands, and gaming console makers have long priced the base hardware thin while the ongoing cartridges, blades, or software carry the actual margin.
when to use it
Products with a genuine recurring consumable that's hard to substitute once the base product is purchased, and where the base purchase itself is a meaningful adoption barrier.
when it backfires
If the 'blade' can be easily substituted with a cheaper generic, the model collapses — you've sold the razor at a loss and lost the blade revenue too.
put it into practice