Razor-and-blades model

The razor-and-blades business model is a business model in which one article is sold at a low price or even given away in order to increase sales of a complementary good, such as consumable supplies. It is different from loss leader marketing and product sample marketing, which do not depend on complementary products or services. Common examples of the razor-and-blades model include inkjet printers whose ink cartridges are significantly marked up in price, coffee machines that use single-use coffee pods, electric toothbrushes, and video game consoles, which require additional purchases of accessories and software not included in the original package.

Although the concept and the catchphrase "Give 'em the razor; sell 'em the blades" are widely credited to King Camp Gillette, the inventor of the double-edged safety razor, Gillette did not in fact follow this model, nor did it invent the razor-and-blades model, although it did pioneer the production and sale of disposable razor blades.