3 ms·
I posted this in another thread, but it warrants repeating: The key factor everyone's missing from a loss leader strategy is that the consumables must be a req
by martingordon 15y ago
I posted this in another thread, but it warrants repeating:
The key factor everyone's missing from a loss leader strategy is that the consumables must be a requirement to use the device. Consoles, razors and printers can all sell for a loss because they are worthless without games, blades and ink. You can get by on a tablet (and I bet a majority of non-tech savvy users do) by just using the built-in apps and/or free apps.
If HP went with this strategy with the TouchPad, it would require that a user spend $1000 on apps to make up for the $300 loss on each TouchPad. At an extremely generous $5/app, that's still 200 apps per user.