Chapter 39
Razor and Blade
Bait and hook
The pattern
In the Razor and Blade business model, the basic product is offered at a bargain price below cost, or even for free. Additional products that customers need in order to use the basic product, on the other hand, are high-priced and so become responsible for generating most of the revenues (WHAT?, VALUE?). This simple yet ingenious business logic is also known as the ‘bait and hook’ method. The principal idea of the pattern is to win the customers’ loyalty by lowering the barriers for purchasing the basic product (WHAT?). Money will start coming in once the customers purchase complementary ...
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