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Topic: Razor and blades business model

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	UK Razor - Free UK Delivery on many items
		A razor is most commonly used by men to shave their facial hair and by women to shave their leg hair and/or pubic hair.
		A potato peeler is a metal blade attached to a metal, plastic or wooden handle that is used for peeling vegetables, usually potatoes.
		Razor wire is a mesh of metal strips with sharp edges whose purpose it is to prevent passage by human beings.
	www.rtaylor.co.uk /e/Razor.html (565 words)

	KPOWEB
		Razor and blades business model is one of the most widely used marketing model by the FMCG firms.
		This business model can be dated to King C. Gillette, who used it for his sales of razor handles and disposable razor blades.
		This business model continues to be used in the disposable razor blade business to this day.
	www.kpoweb.com /a_razor_and_blades_business_model.html (309 words)

	Business Development (Site not responding. Last check: 2007-10-13)
		The model proposed by Osterwalder (2004) synthesises the different conceptualizations into a single reference model based on the similarities of a large range of models.
		These 9 business model building blocks constitute a business model design template which allows companies to describe their business model.
		The bait and hook business model (also referred to as the “razor and blades business model” or the “tied products business model”) was introduced in the early 20th century.
	www.janov.org (807 words)

	ipedia.com: Subscription business model Article (Site not responding. Last check: 2007-10-13)
		The subscription business model is a business model that has long been used by magazines and record clubs, but the application of this model is spreading.
		Finally, subscription models often require or allow the business to gather substantial amounts of information from the customer (such as magazine mailing lists) and this raises issues of privacy.
		The razor and blades business model (also called the bait and hook model) is an attempt to approximate the subscription model.
	www.ipedia.com /subscription_business_model.html (740 words)

	King Camp Gillette (Site not responding. Last check: 2007-10-13)
		While he did improve the design of the safety razor, his true invention was an inexpensive, high profit-margin stamped steel blade and a unique business model.
		The first razors were produced in 1903, selling a total of 51 razors and 168 blades that year.
		The followng year 90,884 razors and 123,648 blades were sold, thanks in part to his low prices, automated manufacturing techniques and good advertising,.
	www.creekstone.net /razors/kingcampgillette.htm (319 words)

	King C. Gillette at AllExperts
		Once the blade became dull, it was discarded and replaced by a new one, using the same holder.
		This has been called the Razor and blades business model, and is an example of a "loss leader".
		Razor sales reached 450,000 units and blade sales exceeded 70 million units in 1915.
	en.allexperts.com /e/k/ki/king_c._gillette.htm (845 words)

	Business Models
		Proponents of the latter viewpoint propose reference models that consist of elements and relationships that allow describing the business model of a company.
		Efforts to link the business model concept to design and innovation are undertaken by a community that is writing a wiki-book on Business Model Design and Innovation.
		It is important to understand that business modeling commonly refers to business process design at the operational level, whereas business models and business model design refer to defining the business logic of a company at the strategic level.
	www.searchtorpedo.com /business_models.htm (1109 words)

	Razor
		Straight razors (also called cut-throat razors because of their potential lethality) with open steel blades were the most commonly used razors before the 20th century.
		A ''single-edge razor blade'' is manufactured to emulate double-edge disposable shaving blades, for various applications where the blade is required to be hand-held.
		Razor wire is sharper than the barbs of barbed wire, though not as sharp as a true razor.
	www.artistopia.com /razor (960 words)

	Hitachi Rotary: Enough to Abandon Blades? - Gizmodo
		The Hitachi Rotary is an electric razor, yes, but its elongated shape might remind you of that old-fashioned razor to which you're so attached, and it's washable, too.
		Im a blade man, but since my beard is so pathetic for someone my age, im starting to consider laser to make it go away for good.
		But electrics, which in the two models I have owed gave a terrible shave and were more painful than blades so I already distrust them, are too expensive to just toss if you don't like them and move on to another brand.
	www.gizmodo.com /gadgets/gadgets/hitachi-rotary-enough-to-abandon-blades-203896.php (3072 words)

	King C. Gillette Summary
		Instead, he is recalled as the inventor of the safety razor, with its disposable blade and as the founder of the major American corporation that bears his name." One hundred years later, the Gillette Company and its name are known world-wide, and razors remain a necessary tool for maintaining personal grooming.
		In the 1700s, the steel straightedge razor was created in England, yet shaving with this sharp, unprotected blade was a dangerous procedure.
		On August 11, 1899, Adams noted, "he filed for the first patent on the device he conceived four summers earlier, calling it 'new in the art of razor manufacture and use.'" In the meantime, technical experts told Gillette that it was impossible to produce steel hard, thin, and cheap enough to make disposable blades.
	www.bookrags.com /King_C._Gillette (2356 words)

	Blades, Cutters & Trimmers, Scrapbooking at Crafts Online Store (Site not responding. Last check: 2007-10-13)
		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.
		This business model is credited to King C. Gillette, who used it for his sales of razor handles and disposable razor blades.
		The model continues to be used in the disposable razor blade business to this day.
	www.craftsonlinestore.com /blades.htm (564 words)

	Shop Smart with Netmarket's Buyer's Guides and Ask the Expert (Site not responding. Last check: 2007-10-13)
		Whether you choose a model with corded or cordless operation, you'll find two basic razor designs: one that uses a flexible shaving foil over stainless steel cutters, and one that uses rotating blades and lifters.
		The blades on these razors will adjust to hug the contours of your skin for the closest shave possible.
		When it's time to clean the razor, you may only need to use the cleaning brush to sweep hair from the blades.
	www.netmarket.com /SHP/scripts/BuyersGuide.asp?SID=00000000000000000000000000000000&ptype_code=RAZR&ptype_desc=Razors (865 words)

	Laser printers, razor blades, and the DMCA - DTM :<\| (Weblog of Dan Fingerman)
		Once upon a time, razor blades were manufactured with their handles attached, as a single piece.
		Gillette realized that he could manufacture the handles separately from the blades and that blades alone would be cheaper to make than the blade-handle combination.
		He could afford to do this because the markup on blades was quite high, yielding a high per-blade profit, so he would make up for any loss on the handle after just a few blades.
	danfingerman.com /dtm/archives/000037.html (1414 words)

	Shaving With Five Blades When Maybe Two Will Do - New York Times
		Selling the new razor will mean persuading men to spend $9.99 on the model; $1.50 more than the Quattro and $2 more than the Mach 3 and the two-bladed Gillette Sensor Excel.
		Szynal calls the "hysteresis effect," which is a razor maker's way of saying that the blades work in concert to pull whiskers out from the skin as they slice into them.
		For one thing, she said, the distance between the blades is 30 percent narrower than the Mach 3, so that the blades flatten the skin before slicing the hair.
	www.nytimes.com /2006/01/19/fashion/thursdaystyles/19skin.html?ex=1295326800&en=3dd6ee2497376f09&ei=5088&partner=rssnyt&emc=rss (864 words)

	The Gadgeteer - Norelco Spectra 8894XL James Bond Edition Electric Razor Review (Site not responding. Last check: 2007-10-13)
		Above the shaft (when the head is closed) is another shaft (let’s call it the top) which is attached to a spring that controls the pressure of each of the 3 rotating cutters.
		Unlike a blade, these things are intended to be used when your face is dry, and I don’t like waiting until after I’m out of the shower - that can take another 10 minutes or so - no good.
		Stepping down to the 8890 model gives you 70 minutes of shaving time, I believe nickel metal hydride batteries, and a nicer looking silver razor (versus the “exquisitely enhanced lacquer finish on the James Bond model” - which is basically a navy blue/fl).
	www.the-gadgeteer.com /review/norelco_spectra_8894xl_james_bond_edition_electric_razor_review (1117 words)

	PTC and BusinessWeek Online
		As a famous Harvard Business School case study notes, by the mid-1980s, Gillette's "profits on blades and razors faltered and the price of Gillette's stock stagnated." A key factor was French pen maker BIC's introduction, in 1975, of a dramatic new shaving product: disposable razor blades.
		Geared to price-conscious consumers, the disposable razor blades cut the cost of shaving by as much as half as compared to traditional cartridge razors--and simultaneously slashed manufacturers' per-unit margins on blades by two-thirds.
		More troubling still, disposables effectively eliminated the low-cost ongoing revenue stream that the sale of razor blades made possible, threatening to turn the shaving products market into a lowest-common-denominator free-for-all in which Gillette's historical competitive edge could be dulled to nothing.
	www.businessweek.com /adsections/2003/ptc/ptc_11.htm (868 words)

	How to Custom Decal a Model - eHow.com
		A modeler enters into a world of miniaturized realism when he builds, displays and operates a replica of a car, boat or airplane.
		The final touch in bringing a model to life is the proper set of decals.
		STEP 2: Start by cleaning the area on your model where the decal is to be applied.
	www.ehow.com /how_12763_custom-decal-model.html (663 words)

	Mba Web
		The bait and hook business model The razor and blades business model also referred to as a union leadership [1] guidance or direction, as in Germany, the Netherlands, and the largest airlines in the end-of-chapter problems.
		The oldest and most basic business model The online auction business model or the bullet has already been bitten, you will discover that film is indeed an untapped source of information, adventure, and educational experiences for the Trade2Win active trader community web site.
		Her job is to develop strategic business practices that will help her company achieve the lowest cost of goods, while maximizing overall category sales.
	www.pangaea-pharm.com /Mba-Web.html (1971 words)

	Handle Razor == The electric razor (also known as the electric dry shaver) is a common electrical shaving device with a ... (Site not responding. Last check: 2007-10-13)
		Handle Razor == The electric razor (also known as the electric dry shaver) is a common electrical shaving device with a rotating or oscillating blade.
		Early razors In its simplest form, a razor is a Handle attached to a handle.
		A potato is a metal blade attached to a metal, plastic or wooden handle that is used for peeling vegetables, usually potatoes.
	www.customcandleshop.com /Handle/Handle-Razor.html (1074 words)

	Business Strategy: The Razor's Edge
		This fall marks the centenary of Gillette, the company that invented not only the safety razor, but also the business model that has fueled much of the high-tech boom over the past two decades.
		By 1910 Gillette dominated the razor business, and its founder was a millionaire.
		In fact, the failure of the giveaway model in many categories can plausibly be blamed for the bursting of the dot-com bubble.
	www.thestandard.com /article/0,1902,28233,00.html (646 words)

	Mass Moments: King Gillette Patents Safety Razor
		Shaving in the late nineteenth century was a time-consuming chore involving a straight-edge razor that needed regular stropping on a leather strap.
		From the beginning, he envisioned the disposable razor blade as wafer-thin and flexible; it would be mass-produced and have a sharp edge on both sides.
		As his disposable razor blade was laying the foundation for a major American corporation, King Gillette himself was promoting the ideal of a social utopia.
	www.massmoments.org /moment.cfm?mid=329 (813 words)

	Investor's Business Daily: Tech Center Exec Q & A
		That's the two-edged sword of the so-called razor/razor blades business model.
		In the Zune case, the business model is inverted.
		The mobile business (software for smart phones) is already starting to return some profit to the company.
	www.investors.com /Tech/TechExecQA.asp?artid=254436379827062 (1280 words)

	Changing Way » Blog Archive » Razor and Blade Model 1
		When I think (or teach, but I like to believe that the thinking usually comes first) about information technology, I keep coming back to the phrase “give away the razor, sell the blades.” The purpose of this series of posts is to capture some thoughts and examples.
		Gillette’s business genius was to grasp the idea of a true mass market where none existed… blades… would be used for a few shaves and then thrown away… Then the shaver would buy another Gillette blade, and another, with profits to be reaped from repeat sales.
		The razor and blades business model (also called the “bait and hook model” or the “tied products model”) works by selling a “master” product at a subsidised price, and making the profit on high margin “consumables” that are essential to the use of the master product.
	changingway.net /archives/155 (481 words)

	USATODAY.com - Gillette hopes to power shaver sales to women with Vibrance (Site not responding. Last check: 2007-10-13)
		Formerly the top-selling razor, Venus is No. 4 overall and No. 2 for women, according to sales tracker Information Resources Inc. Venus ranks behind the No. 1 overall Schick Intuition for the 52 weeks ended Nov. 28.
		The price cut was achieved in part by packaging both models as a razor, a carrying case and one refill, dropping one extra refill from the M3Power package.
		In addition to the new high-tech model, however, Gillette is not ignoring the lowly disposable razor — used by 54% of women in North America.
	www.usatoday.com /money/industries/manufacturing/2004-12-15-razor-usat_x.htm (740 words)

	The business model of Console development. at Game by design
		For as long as I remember, or at least, for the last two generations of consoles, consoles have shipped with a Razor and Blades business model.
		Sure you take a cut (no pun intended) on the initial profit of the razor, knowing full well that you will regularly sell new blades to the customer.
		This business model is also known as a loss leader.
	www.gamebydesign.com /2006/11/06/the-business-model-of-console-development (422 words)

	O'Reilly Radar > Two Great Followups on Business Models Post
		To the extent that business models can be defined as the artful mix of “what companies profitably charge for” versus “what they give away free”, successful innovators are branding and bundling ever-cleverer subsidies into their market offerings.
		Aircraft, razors, consoles, handsets, all currently can control the adjunct service supply, either by natural or legislative barriers (patents to prevent any cheaper blades being supplied), in a way that is not feasible for "information services" in an automobile.
		In closing, I'm not a skeptic (or a fan for that matter) of the "Give away the razor, sell the blades" model, but the automobile case is not an example of it.
	radar.oreilly.com /archives/2006/11/two_great_follo.html (1407 words)

	The Seattle Times: Business & Technology: Proven titles are the big sellers in video-game business (Site not responding. Last check: 2007-10-13)
		It's the classic razor-and-razor-blades business model, in which the central product is sold at a subsidized price and the necessary accessories — in this case, the games — are sold for a profit.
		The company had been expecting $566 million in profit and $5.18 billion in sales for its business year ending March 31, but lowered those expectations to $509.4 million in profit on $4.81 billion in sales.
		The company is hoping to sell 6 million GameCube consoles in its business year, but warned that it might fall short of that goal by about 1 million units.
	seattletimes.nwsource.com /html/businesstechnology/2001858542_videogames16.html (1466 words)

	Gillette unveils 5-bladed razor with two lubricating strips - Sep. 14, 2005
		The move renews an ongoing blade battle with Schick, the shaving unit of Energerizer (Research), which launched a four-blade razor, the Quattro, last year.
		Razors accounted for nearly half of the company's $2.8 billion net sales in its most recent quarter, according to filings with the Securities and Exchange Commission.
		The razor and blade industry has annual sales of $2.4 billion in the U.S. and $10 billion globally, according to Gillette.
	money.cnn.com /2005/09/14/news/fortune500/gillette (770 words)

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