Student or Learner
What does the following model mean? Of course, I know what "razor" and "razor blades" are.
This book posits the theory that free stuff---whether pirated, part of a marketing budget or given away by businesses or creators---is the starting point in a relationship with customers or audiences. It doesn't even have to be free: Nespresso coffee machines...... are all sold at low or negative margins..... While the razor-and-razor-blades model is long established, this book argues that most companies don't go far enough in understanding their audience and focusing on moving low-spending customers along the demand curve...
Pope of the Dictionary.com Forum
You lose money by "giving away" the capital equipment, but make it up (and profit) by locking in the customer to purchasing the consumable supplies from you.