Razors and Razor Blade Strategy

An interesting piece in Techdirt, commenting on an original paper in the Social Science Research Network, about the classic business strategy of razors and razor blades.

We heard it often as a governing profit strategy. That it makes sense to sell the razors at a loss or small profit, knowing that you can sell many compatible razor blades at considerable profit. Those blades can be made so they only work with your razor handle.

Although this seems to be a working strategy, the article examines the history of Gillette, and makes the case that the original razor handle was protected by patents rather than compatibility. A useful commentary on the history of common consumer technology.