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Razorblade model

Razorblade model refers to a business model wherein the consumer buys a primary product, (sometimes at a low margin to the manufacturer), and then must return to the same manufacturer for parts and/or services.

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Razorblade Model

The term comes from Gillette <?please verify>; selling both the razor and the replacement blades, essentially locking the consumer into its products in order to continue to use the razor.

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