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The reverse razor and blade model provides a business with a chance to make great returns on the primary product. Pros and Cons of the Reverse Razor and Blade Business Model
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You need to buy it at a higher price, but you access millions of e-books for free or at a very low price when you have it. Kindle is a device that allows you to access e-books from Amazon. This company offers Kindle at a high price. Related: D2C - Direct To Consumer Business Model and How It WorksĪmazon is another company applying the reverse razor and blade. Notably, Apple does not offer discounts for its devices, but you can enjoy the unlimited stream of premium content without any charges when you own them. However, to enjoy all these luxurious features and add-ons, you have to purchase Apple devices.
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The users get Mac OS and iWork free of charge.
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Once you buy the product, you enjoy low-priced music on iTunes.Īlso, you have an opportunity to buy apps, TV series, and movies at affordable prices. The iPhone, iPod, and Mac products require one to dig deep in their pocket to acquire them. Several businesses adopted the reverse razor and blade model in offering their services. Examples of Reverse Razor and Blade Business Model
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The model works on a simple sentiment that charges the customers a premium price on the main product and offers the add-ons free or at a low price. So, you can enjoy the consumable services and products as long as you wish when you buy them. Investing in the dependent products opens a door for enjoying superb features and services free or at a reasonable price.Īgain, the dependent items are usually long-lasting and durable. You can only enjoy the offers and additional features by buying the dependent item at the set price. Instead of selling the consumables at a high price, the manufacturer offers the dependent at a premium price. Like how a razor cannot work without a blade, dependent items will not achieve the required task without the consumable ones. The company offers two products that depend on each other to operate. This model is similar to the razor and blade one. How Does Reverse Razor and Blade Business Model Work? This aspect ensures that a customer must purchase this device to enjoy the low price continuous/consumables. This subreddit is not endorsed or sponsored by Apple Inc.Related: Robinhood Business Model: How Robinhood Works and Makes MoneyĪs such, they make the blade/consumable products unique and impossible to work with the competitors’ devices. If you'd like to view their content together, click here. This fundamental difference in audience is why we support two communities, r/Apple and r/AppleHelp. Apple SubredditsĬontent which benefits the community (news, rumors, and discussions) is valued over content which benefits only the individual (technical questions, help buying/selling, rants, etc.).