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Originally Posted by pornmasta
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Very interesting ... thanks!
"The razor and blades business model (also called the "bait and hook model" or the "tied products model") works by selling an initial "master" product at a subsidized price, and making the profit on high margin "consumables" that are essential to the use of the master product. The master product may actually be sold at a loss, in order to "capture" the customer into using the consumable product."