I was surprised by this and find it interesting.  💡

Gillette is famous in business schools as the best example of the “razor and blades” strategy or business model: selling razors below cost to build market share so that you can better monetize with over-priced blades (best example today is printers and ink). But it turns out Gillette did NOT use that strategy and it is more of a myth or just-so-story. Very short and easy to read summary here.

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1676444

I was surprised by this and find it interesting.  💡  Gillette is famous in business schools as the best example of the “razor and blades” strategy or business model: selling razors below cost to build market share so that you can better monetize with over-priced blades (best example today is printers and ink). But it turns out Gillette did NOT use that strategy and it is more of a myth or just-so-story. Very short and easy to read summary here.  https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1676444

Bobby

But when was it theorized and named with examples? Maybe DEs aren't even counted since nobody remembers that far back.

Cyril

“Razors and Blades” has its own literature, even a Wikipedia entry; it predates Android by roughly 80 years.

Nonetheless, I was today years old when I learned the "razor and blades" strategy is, effectively, bullshit, and always has been. Certainly reinforces the power of narrative!

“Razors and Blades” has its own literature, even a Wikipedia entry; it predates Android by roughly 80 years.  Nonetheless, I was today years old when I learned the "razor and blades" strategy is, effectively, bullshit, and always has been. Certainly reinforces the power of narrative!

Todd Smith

Wasn’t there a change in business model though, which is what their modern approach is all about?

I know I got a free Mach 2 in the post from Gillette for my 16th birthday. I ended up using Gillette cartridges for about 10 years before switching to king of shaves cartridges, then double-edged another 10 years later.

Wasn’t there a change in business model though, which is what their modern approach is all about?  I know I got a free Mach 2 in the post from Gillette for my 16th birthday. I ended up using Gillette cartridges for about 10 years before switching to king of shaves cartridges, then double-edged another 10 years later.

Jerome Cody

I recently picked up a 1924 ever-ready shovelhead. It wasn't the quality of the product that kept them from gaining market share. The thing is still a high quality razor and a hell of a lot easier to use than my Gillette old type razors. It had to be something market practice related IMO.

Bobby

A group of likeminded people in ScholER are talking about this.