Mueller-Lehmkuhl GmbH

Mueller-Lehmkuhl GmbH

How does a 'razor blade and razor strategy' apply to M.L.?

A razor blade strategy refers to the pricing strategy that is used by many companies in the market. According to this strategy, goods are sold at a very low cost and their complementary products are priced high. This helps in attracting the customers and increasing sales. The name of the strategy comes from the marketing strategy adopted by Gillette, where the razors are priced low, but the replacement blades are charged higher (members.pricingsociety.com). This means that the strategy that is adopted by companies is done in order to increase ...