Some business models stand the test of time, and the Razor & Blade model is a perfect example. The idea is simple: sell the main product at a low price, sometimes at a loss, and make your profit from selling the complementary goods—like razors and blades, printers and ink, consoles and games. This model is used in countless industries and continues to thrive, even today. In this article, we’ll dive into 30 real-world statistics that prove the Razor & Blade model still works. Each stat tells a story, and we’ll break it down for you with insights and actionable advice.
1. Gillette held 52% of the global razor market share in 2023
Gillette’s Dominance in a Crowded Market
Gillette is one of the most iconic examples of the Razor & Blade business model. Despite new players entering the market every year, Gillette maintains over half of the global market share for razors. That’s a clear sign of how powerful this model can be when executed right.
So, what’s Gillette doing that others aren’t?
They offer razors at competitive prices, often bundled or discounted, but their replacement blades are where the real money comes in. Customers are locked into the ecosystem. Once you buy a Gillette handle, switching to another brand is inconvenient. You’re more likely to keep buying Gillette blades.
Gillette has also mastered the art of branding. Their commercials don’t just sell razors—they sell confidence, precision, and style. Their value proposition isn’t about cost. It’s about quality and trust, and customers respond to that.
Actionable Insight
If you’re thinking of using a Razor & Blade model, focus on building a strong brand first. Your base product should be affordable, but your messaging should highlight long-term benefits. Once customers trust your brand, they’ll keep coming back for refills.
2. Dollar Shave Club reached $200 million in annual revenue before being acquired by Unilever for $1 billion
How Dollar Shave Club Disrupted the Market
Dollar Shave Club came in with a simple promise: razors delivered to your door for just a few bucks a month.
They took a boring, overlooked product and turned it into a subscription-based sensation. Their viral marketing videos helped, but what really worked was the convenience and affordability.
Before long, they hit $200 million in revenue. That’s not just impressive—it’s game-changing. Unilever saw the potential and acquired them for a whopping $1 billion. That’s five times their annual revenue. Why? Because Unilever knew the long-term value of recurring purchases from loyal customers.
The Razor & Blade model worked here not just because of the product, but because of the delivery system. Subscription-based delivery added another layer of stickiness.
Actionable Insight
Consider how you can bundle recurring purchases into a subscription. Make life easier for your customers. Reduce friction. If your product needs regular replacements—whether it’s coffee, skincare, or batteries—a subscription model can increase revenue and customer retention dramatically.
3. Over 60% of printer companies’ profits come from ink cartridge sales, not the printer itself
Why Ink Beats the Printer
This is a textbook case of the Razor & Blade model. Walk into any store and you’ll see printers at shockingly low prices. Sometimes they’re even cheaper than a pack of cartridges. That’s because the real profit comes later, when you need ink.
Printer companies like HP and Canon design their printers to work best—or only—with their own cartridges. They use chips, software lock-ins, and even legal action to stop third-party ink sales.
That may sound aggressive, but it’s effective. Ink is a necessity. Once you buy the printer, you’re essentially locked into a revenue stream for the company.
Actionable Insight
If your product can be paired with a consumable that runs out regularly, consider engineering it so that only your brand can be used. This might involve tech, packaging, or design. It’s a protective moat that ensures customers stay within your ecosystem.
4. Nespresso machine owners buy an average of 14 sleeves of pods per year, yielding over 70% of Nespresso’s revenue
Brewing Profit, One Pod at a Time
Nespresso machines aren’t just coffee makers—they’re entry tickets into a recurring revenue stream. While the machines themselves are moderately priced, the real magic lies in the coffee pods. On average, customers buy 14 sleeves per year, and with each sleeve containing multiple pods, that adds up quickly.
More importantly, over 70% of Nespresso’s revenue comes from these pods. That’s not a coincidence. Nespresso carefully designed its ecosystem to ensure repeat purchases. The machines are sleek and high quality, but they only work with Nespresso pods or certified alternatives. This locks customers in, both by design and by user experience.
By positioning their pods as a premium product, they’ve maintained strong margins even in a crowded market. That’s the Razor & Blade model done right.
Actionable Insight
Don’t just focus on the base product—plan for the long-term consumables. Design your product to make repeat purchases feel like an upgrade, not a chore. And if possible, integrate exclusivity: only your brand’s refills should work seamlessly.
5. HP makes up to 70% of its consumer printing profits from ink cartridges
Ink Is the Lifeblood of HP’s Business
When people buy HP printers, they often think they’re getting a great deal. And they are—initially. But HP is playing the long game. Their printers are priced to be accessible, but the ink cartridges? That’s where the real revenue lies.
Up to 70% of HP’s profits in consumer printing come from ink sales. That’s massive. HP’s Instant Ink subscription is a great example of how they’ve further refined the Razor & Blade model. It removes the guesswork by automatically shipping new cartridges when ink runs low.
This isn’t just about selling ink—it’s about owning the whole experience and building recurring revenue through subscriptions.
Actionable Insight
Think about how you can automate reorders. Can you build in sensors, reminders, or software that tells your customers when they need to repurchase? The smoother you make the process, the more likely they are to stick with your brand.
6. Keurig makes less than 15% profit on brewers, but over 40% margin on K-cups
The Real Profit Is in the Cup
Keurig is another great example of how hardware can be a gateway. The brewers themselves don’t make a lot of money—only around a 15% profit margin. That’s because Keurig is more than happy to sell the machines at low prices. Why? Because the real profits pour in when customers buy K-Cups.
With over 40% margin on each K-Cup, it’s a volume game. The more machines out there, the more coffee pods get sold. And with customers often drinking coffee daily, those sales add up fast.
Keurig even introduced a digital rights management system in some models to prevent unlicensed pods from being used, further cementing the exclusivity of their ecosystem.
Actionable Insight
Use your base product to plant the seed. Think beyond the initial sale. The follow-up product—if it’s something customers use regularly—can be where your real business growth happens. Design for usage, convenience, and lock-in.
7. Sony sold PlayStation 5 at a loss initially, recouping profits through $9.7 billion in annual game and service sales
When the Console Isn’t the Product
Sony’s PlayStation 5 is a powerhouse, but they didn’t make money on the console right away. In fact, they sold it at a loss. But they weren’t worried. That’s because their eyes were on the bigger prize—games and services.
With $9.7 billion in annual sales from downloadable games, subscriptions, and in-game purchases, the PS5 is more like a portal. It gets people into the ecosystem, and once they’re there, the money flows.
The Razor & Blade model here is more advanced. It’s not just about physical products, but also digital content. As long as users stay engaged, Sony keeps earning.
Actionable Insight
If you offer a digital product, think about what happens after the first purchase. Can you upsell content, services, or features? Your first sale should lead to a journey, not a finish line.
8. The global men’s grooming market was valued at $81.2 billion in 2022, projected to hit $115 billion by 2028, largely driven by razor blade refills
The Billion-Dollar Grooming Boom
Men’s grooming is booming, and much of that growth is fueled by razor blade refills. This shows how a recurring purchase—something simple like a razor blade—can scale an entire market.
Consumers today are more open to subscriptions, bundles, and auto-refills. Combine that with an expanding market, and you’ve got the perfect recipe for sustained growth.
This trend also shows that people are willing to pay for convenience and quality. They don’t want to shop for blades every month—they want them to show up at their door. That’s how brands like Gillette, Dollar Shave Club, and Harry’s are riding this wave.
Actionable Insight
If you’re in a fast-growing industry, don’t just focus on new customers. Focus on maximizing the value of each one. Build in replenishment, education, and engagement to extend their journey with your brand.
9. The average Gillette customer spends $240 annually on replacement cartridges
The Power of High Lifetime Value
Here’s what makes Gillette so successful: their customers keep coming back. The average customer spends around $240 per year just on blade refills. That’s not small change. Multiply that by millions of loyal users and you start to understand the scale of their revenue.
Gillette doesn’t just rely on the strength of its product. It reinforces loyalty with branding, premium packaging, product innovations, and convenience programs like subscriptions. Each of these elements helps increase the lifetime value of the customer.
The handle might cost $10, but over five years, that one buyer might spend over $1,000. That’s the Razor & Blade strategy in action—small entry, big long-term payoff.
Actionable Insight
Know your customer lifetime value (CLTV). Then ask: how can I extend it? More refills, more accessories, even complementary products can help. But it starts with giving people a reason to stay. Make them feel smart, stylish, and taken care of when they stick with your brand.
10. Over 75% of coffee pod machine owners use only the brand’s proprietary pods
Built-In Loyalty Through Compatibility
This stat reveals something important: once people buy into a system, they rarely switch. Over 75% of coffee pod machine owners only use the pods made for their specific machine. Not because they love them the most, but often because they don’t want to risk a poor fit or taste.
Proprietary systems create habits. They make it easier to keep using the same brand and harder to switch. Keurig, Nespresso, and others have mastered this with design, messaging, and sometimes even tech lockouts.
This creates strong customer retention. Even if there are cheaper options, most people stick with what they know works.
Actionable Insight
Think about how your consumables interact with your base product. Can you make them exclusive, or at least strongly recommended? The easier you make it to choose your brand again, the more reliable your revenue stream becomes.
11. HP controls 38% of the global home printer market, largely due to its ink subscription program
Subscriptions Reinvent the Razor & Blade Model
HP didn’t just sell printers—they redefined how people buy ink. Their Instant Ink subscription program changed everything. Instead of waiting until ink runs out and shopping manually, customers receive new cartridges automatically.
This model helped HP capture 38% of the global home printer market. It’s not just about making good printers—it’s about removing friction from the replacement process. That keeps customers engaged longer and increases recurring revenue.
By combining the Razor & Blade model with subscription convenience, HP gave customers fewer reasons to leave.
Actionable Insight
Can you build a membership or refill plan into your business? Think about offering bundles or recurring delivery options that feel like upgrades. Give users peace of mind and automate the maintenance of their experience.
12. PlayStation Plus subscriptions bring in over $3 billion annually
When Services Become the Blade
Sony’s Razor & Blade model doesn’t stop at game sales. Their PlayStation Plus subscription service is a recurring revenue machine, generating over $3 billion each year. Subscribers get access to online multiplayer, free games, cloud storage, and exclusive discounts.
This adds a whole new layer to the model. Instead of just buying games, users are paying monthly for ongoing access and benefits. It turns a one-time customer into a continuous source of income.
This blend of digital service and hardware ecosystem shows how far the model can evolve.
Actionable Insight
Look at how you can add digital value on top of your core product. Could you offer premium access, extra features, or content as a subscription? The recurring revenue from these services can often exceed what you earn from product sales.
13. Keurig owns 29% of the U.S. coffee maker market, driven by single-serve pod refills
Winning Market Share Through Consumables
Keurig didn’t just make a coffee machine—they built a habit. By offering a wide variety of pod flavors and types, they became a staple in millions of kitchens. Today, they own nearly 29% of the U.S. coffee maker market.
That dominance isn’t because their brewers are the best on the market. It’s because they’ve made the daily coffee experience fast, consistent, and easy. And every single cup brewed adds to their bottom line through pod sales.
The strategy is simple: get a machine into the home and let the pods do the rest.
Actionable Insight
Ask yourself: how can your product become part of someone’s daily routine? The more often it’s used, the more opportunity you have to sell the supporting products. If you can tie consumption to a regular habit, you’ll build a loyal base that keeps spending.
14. Gillette’s subscription blade service helped reduce customer churn by over 25%
Reducing Churn with Smart Subscriptions
Customer churn is the silent killer of recurring revenue. That’s why Gillette launched its subscription blade service—to keep customers engaged and reduce the chances of them switching to competitors.
And it worked. The service reduced churn by over 25%. That’s not just retention—that’s resilience. By delivering blades directly, Gillette stayed top-of-mind and top-of-drawer.
The subscription model doesn’t just bring convenience; it builds brand loyalty. Customers who subscribe are less likely to compare prices or try alternatives.
Actionable Insight
If churn is hurting your business, try offering a subscription. Make sure it includes perks—like free shipping or a slight discount. People are more likely to stick around if it feels like they’re getting more value without added effort.
15. Schick’s Hydro Connect blades work with Gillette handles, responding to locked-in razor ecosystems
Fighting Fire with Compatibility
Schick made a bold move with its Hydro Connect line. Instead of launching yet another handle-blade system, they created blades that are compatible with Gillette handles. Why? Because they understood that customers don’t want to change handles—they want better or cheaper refills.
This was a clever way to bypass the ‘lock-in’ strategy that defines the Razor & Blade model. And it proves how much power lies in the consumables, not the core product. By targeting customers already locked into another ecosystem, Schick managed to grow its market share without selling more handles.
It also shows how product compatibility can become a strategic weapon.
Actionable Insight
You don’t always have to build a new ecosystem—you can tap into existing ones. If your competitor has a strong base product, consider making accessories or refills that are compatible with it. It’s a shortcut to access an established user base.
16. Oral-B’s electric toothbrushes are often sold at breakeven or loss, while replacement heads have up to 80% profit margin
Dental Devices with a Sharp Edge
Oral-B’s electric toothbrushes often seem like a great deal, and they are—but not for the reasons you might think. The real profit doesn’t come from the brush; it comes from the replacement heads. With profit margins as high as 80%, every refilled brush head becomes a gold mine.
The toothbrush may be priced aggressively to win new users, but once they’re in, they need replacement heads every 2–3 months. It’s a perfect example of the Razor & Blade model in personal care.
The brand also releases specialized brush heads—whitening, sensitive, deep clean—which are positioned as upgrades, allowing them to charge premium prices.
Actionable Insight
When developing your refills or accessories, don’t just replicate the original. Offer variations that appeal to different customer needs. Premium, budget, or purpose-driven options can help maximize profit while keeping users engaged.
17. Nintendo earns over 50% of its profits from game and accessory sales, not consoles
More Than Just a Console Company
Nintendo’s consoles are iconic, but the real money is in what comes after. More than half of their profits come from game and accessory sales—not from the hardware itself. And it makes perfect sense.
Nintendo has built a world of characters, stories, and exclusive content. Their customers don’t just buy a console—they buy into an entire entertainment ecosystem. And once inside, they want more games, more controllers, and more experiences.
Their business model is about lifetime engagement, not one-time sales.
Actionable Insight
If you sell hardware or core products, look at what “extras” you can offer. Can you create experiences, content, or accessories that enhance the user’s experience? Those often have higher margins and create long-term value.
18. Over 80% of consumers using a branded device (razor, printer, console) never switch refills due to compatibility issues
The Stickiness of Compatibility
People like convenience, and they hate uncertainty. Over 80% of users stick with the same brand of refills simply because switching feels risky or complicated. What if the new blade doesn’t fit? What if the ink leaks? What if the game doesn’t run right?
Brands know this, and they lean into it. They design their systems so that switching refills isn’t just hard—it’s mentally exhausting for the customer. This “invisible fence” is part of what makes the Razor & Blade model so profitable.
And as long as the original product is decent, customers rarely bother exploring alternatives.
Actionable Insight
Make switching away from your brand feel inconvenient. This doesn’t mean tricking your customers—it means creating a seamless, dependable experience that makes them ask, “Why change?” Familiarity is a strong force. Use it to your advantage.
19. BIC sells razors for as low as $1, making profits on high-margin multi-pack refills
Volume Over Margin at the Entry Point
BIC’s approach to razors is ultra-aggressive. You can buy one for as low as $1. That might seem like a losing strategy—until you look at the big picture. The razor is just a way to get customers in. Once they start shaving, they’ll need more.
And that’s where the high-margin multi-pack refills come in. These refills are often bought impulsively at supermarkets and convenience stores, which adds to BIC’s advantage.
By making the initial purchase practically risk-free, BIC maximizes its chances of capturing long-term customers.
Actionable Insight
Don’t be afraid to underprice your core product—if you know your backend is solid. Just make sure your margins on refills, upgrades, or accessories are strong enough to carry your growth. Low entry, high return—it works.
20. Microsoft’s Xbox Game Pass generates more than $1 billion annually
Subscriptions as the New Blade
Xbox Game Pass is one of Microsoft’s most successful strategies in recent years. For a monthly fee, users get access to hundreds of games. The value is obvious—and the recurring revenue is massive, surpassing $1 billion annually.
Game Pass turns the traditional model on its head. Instead of buying one game at a time, players pay a fee to access a library. This reduces friction and increases playtime, which keeps users locked into the Xbox platform.
It’s a modern Razor & Blade model, with the console as the razor and Game Pass as the never-ending blade.
Actionable Insight
Ask yourself: can I turn one-time purchases into ongoing experiences? Whether it’s content, services, or support, a recurring model gives you predictable revenue and closer relationships with your customers.
21. The average gamer spends 5x more on games and services than on the console itself
Beyond the Box: Where the Real Money Lies
When someone buys a gaming console, that’s not the end of the sale—it’s just the start. On average, a gamer spends five times more on games, subscriptions, and downloadable content than they spent on the console itself. That’s the very essence of the Razor & Blade model.
It’s not just about access to games—it’s about engagement. Once someone has the hardware, they start to explore. They want new games, new features, and bonus content. This leads to long-term, ongoing purchases that often last for years.
Companies like Sony, Microsoft, and Nintendo have built ecosystems where the console simply enables ongoing revenue.
Actionable Insight
Don’t treat your initial product as the final transaction. Build a roadmap for how customers can keep buying from you, month after month, year after year. Offer value continuously, and they’ll keep spending.
22. Printer ink is more expensive per ounce than vintage champagne — around $2,700 per gallon
High Margins in Plain Sight
This stat surprises many people, but it’s true: printer ink costs more per ounce than luxury items like vintage champagne. At around $2,700 per gallon, printer ink is one of the highest-margin products in consumer goods.
And people keep buying it. Why? Because they have no choice. If you want to print, you need ink—and most printers won’t work with off-brand cartridges.
This isn’t a pricing mistake. It’s a strategy. By pricing the printer low and the ink high, companies create an ongoing dependency.
Actionable Insight
Can your “blade” be positioned as a luxury, even if it’s a necessity? If so, you can command higher prices. What matters most is perceived value and irreplaceability. If people feel they need your product, price becomes less of a barrier.
23. Philips Sonicare makes over 60% of its oral healthcare profits from brush head sales
Cleaning Up with the Refills
Philips Sonicare is a premium electric toothbrush brand. But the big money isn’t in the toothbrush—it’s in the brush heads. Over 60% of their oral healthcare profits come from these replacements.
Users are advised to change brush heads every 3 months. That creates a natural cycle of repeat purchases. And since Sonicare uses unique head designs, it’s difficult to find perfect third-party matches.
This creates reliable, recurring revenue. It also encourages the brand to focus more on customer satisfaction than acquisition, which strengthens retention even more.
Actionable Insight
Create a natural usage cycle in your product. If users know they need a new component every 60 or 90 days, they’ll budget for it. Bonus points if you automate or remind them of this need, reducing drop-off and boosting lifetime value.
24. Razor subscriptions (e.g., Harry’s) see a 2.5x increase in lifetime value per user
Subscriptions Build Value, Not Just Convenience
Harry’s is one of the rising stars in the shaving world, and its subscription model is a big reason why. Compared to one-off purchasers, subscribers bring in 2.5 times more lifetime value.
This isn’t just because of the regular charges—it’s because of the relationship. When customers subscribe, they trust the brand to meet their needs consistently. That trust leads to add-on purchases, referrals, and loyalty.
The simplicity of not having to think about when to buy next creates stickiness that’s hard to break.
Actionable Insight
If you’re not offering subscriptions yet, it’s time to consider it. Make it easy to cancel, customize, and pause—because transparency builds trust. But once users experience the convenience, many will stay longer and spend more.
25. Amazon sells Kindle e-readers near cost, profiting on a 30% cut of eBook sales
The Hardware Isn’t the Business
Amazon doesn’t make big margins on Kindle devices. In fact, they often sell them near cost. But that’s by design. Their real goal is to bring you into the Kindle Store ecosystem.
Every book you buy puts money into Amazon’s pocket. They take about a 30% cut from each sale, and the volume is huge. Once you own a Kindle, you’re much more likely to buy eBooks from Amazon instead of elsewhere.
The Kindle is just the entry point. The real value comes from turning readers into long-term customers.
Actionable Insight
Think about what your product unlocks. What kind of ongoing usage or content does it create demand for? Make the initial purchase easy, even irresistible, if you know the backend will drive recurring profits.
26. In-app purchases make up over 50% of gaming industry revenue, a modern Blade-style model
Microtransactions, Massive Revenue
Today, the gaming industry doesn’t just rely on game sales. Over 50% of its revenue comes from in-app purchases—things like costumes, upgrades, and bonus content. These microtransactions might only be a few dollars each, but they add up quickly.
Games are now designed with extended life cycles in mind. Developers create content updates, new challenges, and social features that keep players engaged and spending.
This is the Razor & Blade model reimagined for the digital age.
Actionable Insight
Could your business offer add-ons, upgrades, or customization options after the first purchase? Even if they’re small in price, they create ongoing revenue and strengthen engagement.
27. Electric shaver brands experience 2x customer lifetime value when paired with automatic blade refill programs
Doubling Value Through Smart Automation
Electric shavers are often seen as a one-time investment, but companies have found a way to turn them into recurring revenue streams. Brands that offer automatic blade refill programs see double the customer lifetime value compared to those that don’t.
Why? Because automation eliminates friction. Users don’t have to remember to buy new blades or go searching for compatible models. Refills show up just in time, and the convenience keeps people subscribed.
These programs also allow brands to build direct relationships with their customers, rather than relying on third-party retailers.
Actionable Insight
Consider how automation could transform your business. What recurring need can you fulfill on your customer’s behalf without them having to think about it? The fewer decisions they have to make, the longer they’ll stick with you.
28. Refillable pod systems in vaping generate 4x more revenue than the device alone
Refill Culture Fuels Industry Growth
Vaping devices are sold at competitive prices, sometimes even at a loss. But the refillable pods? That’s where the serious revenue lies. On average, brands make four times more from the pods than from the initial hardware.
And it makes sense. Vape users often go through pods weekly or even more frequently. This high consumption rate creates a steady stream of income for companies.
By offering flavors, limited editions, and improved formulas, brands also upsell within the refill ecosystem.
Actionable Insight
Can your consumable be “flavored,” “upgraded,” or released in limited editions? Small variations keep your product fresh and give customers more reasons to buy again—even when they already have enough.
29. Over 90% of major appliance companies are shifting to consumable-driven revenue models
The Evolution of Big-Ticket Items
It’s not just razors and games anymore. Even major appliance companies—think dishwashers, refrigerators, air purifiers—are moving toward Razor & Blade models. Over 90% are now exploring ways to make consumables or add-ons a primary revenue source.
That might include water filters, detergent pods, subscription maintenance plans, or smart features with monthly fees. These additions create recurring income and help companies break free from one-time sale limits.
Even high-end brands are getting into the game, offering premium consumables that match the aesthetics and performance of their core products.
Actionable Insight
If you sell a durable good, look at what customers need to keep it running well. Can you sell that need yourself instead of leaving it to third parties? This not only grows your revenue but also strengthens customer loyalty.
30. Proprietary consumables drive 80% of customer retention in shaving, printing, and coffee industries
Own the Refill, Own the Customer
When a brand owns the consumable experience, they often own the customer too. In industries like shaving, printing, and coffee, proprietary consumables drive about 80% of retention. That means most people don’t leave—not because they can’t, but because they don’t want to deal with incompatibility.
These customers might not even realize they’re being retained by design. But the friction of switching is enough to keep them loyal. And as long as the experience remains positive, there’s no need to look elsewhere.
This is where the Razor & Blade model excels—silent, consistent, and long-lasting.
Actionable Insight
Think of your consumables as your strongest customer retention tool. Design them with quality and exclusivity. Make them feel like part of the full experience, not just a necessity. When you do this well, customer loyalty becomes effortless.
Conclusion
The Razor & Blade business model is far from outdated—it’s thriving. Across industries, from grooming to gaming, from appliances to digital services, the formula remains simple but powerful: offer a product that brings people in, and build recurring revenue through the essentials they’ll need again and again.
