What Is the Razor-Razorblade Model?

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但科学研究和技术服务领域企业的高管薪酬却下降了4.2%。
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11月份以人民币计算的出口也同样上升了,同比上升5.9%。不过,若以美元计算,同比增幅则只有0.1%,达到1968亿美元。不过,这仍然大大超过了下滑5%的预期。在之前的10月份,出口同比跌幅曾为7.3%,跌势有所缓和。

The concept is similar to the "freemium," in which digital products and services (e.g., email, games, or messaging) are given away for free with the expectation of making money later on upgraded services or added features.

Take targeted and powerful measures to strengthen areas of weakness.
This year's best midseason trade action happened early:

Understanding the Razor-Razorblade Model

If you've ever purchased razors and their matching replacement blades, you know this business method well. The razor handles are practically free, but the replacement blades are expensive. King Camp Gillette, who invented the disposable safety razor and founded the company that bears his name, popularized this strategy in the early 1900s. Today, Gillette (and its parent Procter & Gamble) employs the strategy to great profit.

The biggest threat to the razor and blades business model is competition. Companies may thus attempt to maintain their consumable monopoly (and maintain their margin) by preventing competitors from selling products that match with their durable goods. For example, computer printer manufacturers 家居卖场过剩论?留下的20%会占据80%的市场 and razor manufacturers 2016年是涂料企业最艰难的一年? from mating with their razors.

With trademarks, patents, and contracts, firms can stifle competition for a long enough time to become a leader in their industry. Keurig is a good example of a company that capitalized on this model by preventing competitors from selling complementary products. They held a patent on the K-cup coffee pods until 2012 and, as a result, enjoyed substantial profits and soaring stock prices. However, after the patent expired, competitors flooded the market with their version of the K-cup, eroding Keurig's profits and market share.

If a competitor offers a comparable consumable product at a lower price, the sales of the original company's product suffer, and their margin erodes. After years of price increases that led to complaints that their razor blades were too expensive and in response to subscription-based "clubs" stepping in with competitive products at a lower price, Gillette lowered the price of its Mach 3 Turbo razor in January 2018.

Key Takeaways

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Example of a Razor-Razorblade Model

This was the biggest monthly drop in imports since last September and also means shipments have contracted year-on-year for the past 15 months straight.
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Effective bosses and managers tend to:
Venezuela's government closed all crossings a year ago to crack down on smuggling along the 1378-mile (2219 kilometer) border. It complained that speculators were causing shortages by buying up subsidized food and gasoline in Venezuela and taking them to Colombia where they could be sold for far higher prices.
如果陆金所成功完成此轮融资,将可凸显出该行业今年以来增长有多快。该公司刚在4月融资5亿美元,公司估值在当时达到100亿美元。

For example, Microsoft makes no money on the sale of its Xbox One X game console even at an average $499 price, but it gets about $7 out of each $60 video game.

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