Razor and Blade

Razor and Blade models sell a “hook” product for cheap to lock people into buying high-priced refills later. Once the customer owns the main tool, the system works without needing anyone’s permission to keep generating sales. The secret sauce is the unique design that ensures only your parts fit. This creates wealth by making a one-time sale lead to a lifetime of income. Gillette and Nespresso prove that the real money is in the “blades,” not the “razor.”