Comments on: The Double Sell http://blog.bwagy.com/the-double-sell/?utm_source=rss&utm_medium=rss&utm_campaign=the-double-sell Thu, 22 Jul 2010 05:05:26 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Ben Young http://blog.bwagy.com/the-double-sell/comment-page-1/#comment-3079 Ben Young Mon, 08 Jun 2009 22:06:16 +0000 http://blog.bwagy.com/?p=1848#comment-3079 @Miki Thanks for building on the conversation and you're right it is vertical integration! Looking at someone elses razor blade handle and delivering on that is a cunning way to gain market share. @Miki Thanks for building on the conversation and you’re right it is vertical integration! Looking at someone elses razor blade handle and delivering on that is a cunning way to gain market share.

]]> By: Miki Szikszai http://blog.bwagy.com/the-double-sell/comment-page-1/#comment-3076 Miki Szikszai Mon, 08 Jun 2009 17:01:01 +0000 http://blog.bwagy.com/?p=1848#comment-3076 This is the razor blade model. You sell the handle cheap and the blades expensively. There is a marketing trick in here - understanding the *perception* of value. Consumers buy the same blades over and over because they have bought the handle. If they stopped to think a minute they'd realise they could easily (and cheaply) change to brand B but their need for convenience (and inherent resistance to change) means they keep buying Brand A. What you are talking about is vertical integration. Isn't a better model to look at someone else's razor blade handle that they have used to buy market share and add value to that? Then you can flex with the market rather than painting yourself into a corner. Game producers do this well producing the same franchise over multiple platforms. They learn to be agile and meet the same need irrespective of the core platform. M This is the razor blade model.

You sell the handle cheap and the blades expensively. There is a marketing trick in here – understanding the *perception* of value.

Consumers buy the same blades over and over because they have bought the handle. If they stopped to think a minute they’d realise they could easily (and cheaply) change to brand B but their need for convenience (and inherent resistance to change) means they keep buying Brand A.

What you are talking about is vertical integration. Isn’t a better model to look at someone else’s razor blade handle that they have used to buy market share and add value to that? Then you can flex with the market rather than painting yourself into a corner. Game producers do this well producing the same franchise over multiple platforms. They learn to be agile and meet the same need irrespective of the core platform.

M

]]>