Razor Blade Marketing
Freebie marketing
A free gift knitting row counter given away byWoman 's Weekly in the 1980s-1990s.
Freebie marketing, also known as the razor and blades business model,[1] is a business model wherein one item is sold at a low price (or given away for free) in order to increase sales of a complementary good, such as supplies (inkjet printers and ink cartridges, "Swiffers" and cleaning fluid, mobile phones and service contracts) [2] or software (game consoles and games).[1] It is distinct from loss leader marketing and free sample marketing, which do not depend on complementarity of products or services.
Though the concept and its proverbial example "Give 'em the razor; sell 'em the blades" are widely credited to King Camp Gillette, the inventor of the disposable safety razor and founder of Gillette Safety Razor Company,[1] in fact Gillette did not originate this model.[3]
|Contents |
| [hide] |
|1 Development |
|1.1 Free gifts |
|1.2 Free lunch |
|1.3 Gillette |
|2 Applications |
|2.1 Standard Oil |
|2.2 Comcast |
|3 Issues |
|3.1 Specific examples |
|3.1.1 Printers |
|3.1.2 Video games |
|3.2 Other goods |
|3.3 Tying |
|3.4 Legal issues |
|4 See also |
|5 References |
[edit]Development
[edit]Free gifts
A free gift is one for which the giver is not trying to get something in return, or
A free gift knitting row counter given away byWoman 's Weekly in the 1980s-1990s.
Freebie marketing, also known as the razor and blades business model,[1] is a business model wherein one item is sold at a low price (or given away for free) in order to increase sales of a complementary good, such as supplies (inkjet printers and ink cartridges, "Swiffers" and cleaning fluid, mobile phones and service contracts) [2] or software (game consoles and games).[1] It is distinct from loss leader marketing and free sample marketing, which do not depend on complementarity of products or services.
Though the concept and its proverbial example "Give 'em the razor; sell 'em the blades" are widely credited to King Camp Gillette, the inventor of the disposable safety razor and founder of Gillette Safety Razor Company,[1] in fact Gillette did not originate this model.[3]
|Contents |
| [hide] |
|1 Development |
|1.1 Free gifts |
|1.2 Free lunch |
|1.3 Gillette |
|2 Applications |
|2.1 Standard Oil |
|2.2 Comcast |
|3 Issues |
|3.1 Specific examples |
|3.1.1 Printers |
|3.1.2 Video games |
|3.2 Other goods |
|3.3 Tying |
|3.4 Legal issues |
|4 See also |
|5 References |
[edit]Development
[edit]Free gifts
A free gift is one for which the giver is not trying to get something in return, or
References: 1. ^ a b c d Martin, Richard (2001-08-06). "The Razor 's Edge". The Industry Standard. Retrieved 2008-08-01. 2. ^ James Corden, "Free Gifts With Mobile Phones", Best Contract Mobile Phones [1] 3. ^ Randal C. Picker, "The Razors-and-Blades Myth(s)", John M. Olin Law & Economics Working Paper No. 532, University of Chicago Law School full text PDF 4. ^ a b Anderson, Chris (March, 2008). "Why $0.00 is the Future of Business". Wired. 5. ^ Picker, p. 3 6. ^ a b Cochran, Sherman. "Encountering Chinese Networks: Western, Japanese, and Chinese Corporations in China, 1880-1937". University of California Press. Retrieved 2008-03-16. 7. ^ Yuk-fai Fong. "When Does Aftermarket Monopolization Soften Foremarket Competition?". Northwestern University Kellogg School of Management. Retrieved 2008-03-16. 8. ^ Cory Doctorow. "Two million CueCats at $0.30/each". BoingBoing.net. Retrieved 2008-03-16. 9. ^ Trade Practices Act - Third Line Forcing