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This is not new, Gillette used to give out free razors to get people used to their ecosystem and get recurring revenue. It’s just more “in your face” now.

by jitix 3y ago

benjaminbachman 3y ago
But there's no network effects with razors.
- jitix 3y ago
  Exactly! This is a strategy that works even for markets without network effects. It just gets even more amplified (and profitable) when network effects exist. In todays terms the equivalent would be an invite to a closed Gillette page/group/discord that has exclusive videos from the latest influencers (or whatever teenagers like and talk about). For example OOP could get their daily cat based dopamine fix from a myriad of online sources, most open or easily bypassed but they want to see this one particular cat which is behind Meta’s wall and requires additional payment (in terms of data) from them.
DMell 3y ago
I noticed this same thing recently with Arcoss golf sensors which are now essentially free everywhere.
silisili 3y ago
Did they stop? It used to be every guy got a razor for their 18th birthday, which was creepy as nobody even signed up for it(unsure about women?). Myself and all my classmates got one. I tried Googling this, and the last article I found was from 2019...
MikeDelta 3y ago
Well, I think Gillette's purpose was also very much in your face.
mdorazio 3y ago
Loss Leader is not the same economically as Dumping. Gillette is the former, VC-backed companies are the latter. Loss Leader tactics are sustainable in a competitive market, but Dumping is profit negative until someone (hopefully your competition) goes out of business.
w_for_wumbo 3y ago
I think Nestlé wins the most egregious example; where they gave free baby formula in developing countries for just long enough for the mothers to stop producing milk and then started charging them for the right to feed their babies.
- wak90 3y ago
  While telling the mothers it was healthier for the baby to use formula
LanceH 3y ago
Veering off topic, I started using safety razors for just as good a shave, for 10cents a blade. At ten cents each, I use a new blade every shave and it's so much nicer than a 2nd use top-of-the-line gillette.

This is not new, Gillette used to give out free razors to get people used to their ecosystem and get recurring revenue. It’s just more “in your face” now.

by jitix 3y ago

This is not new, Gillette used to give out free razors to get people used to their ecosystem and get recurring revenue. It’s just more “in your face” now.

benjaminbachman 3y ago

But there's no network effects with razors.

jitix 3y ago
Exactly! This is a strategy that works even for markets without network effects. It just gets even more amplified (and profitable) when network effects exist. In todays terms the equivalent would be an invite to a closed Gillette page/group/discord that has exclusive videos from the latest influencers (or whatever teenagers like and talk about). For example OOP could get their daily cat based dopamine fix from a myriad of online sources, most open or easily bypassed but they want to see this one particular cat which is behind Meta’s wall and requires additional payment (in terms of data) from them.

DMell 3y ago

I noticed this same thing recently with Arcoss golf sensors which are now essentially free everywhere.

silisili 3y ago

Did they stop? It used to be every guy got a razor for their 18th birthday, which was creepy as nobody even signed up for it(unsure about women?). Myself and all my classmates got one. I tried Googling this, and the last article I found was from 2019...

MikeDelta 3y ago

Well, I think Gillette's purpose was also very much in your face.

mdorazio 3y ago

Loss Leader is not the same economically as Dumping. Gillette is the former, VC-backed companies are the latter. Loss Leader tactics are sustainable in a competitive market, but Dumping is profit negative until someone (hopefully your competition) goes out of business.

w_for_wumbo 3y ago

I think Nestlé wins the most egregious example; where they gave free baby formula in developing countries for just long enough for the mothers to stop producing milk and then started charging them for the right to feed their babies.

wak90 3y ago
While telling the mothers it was healthier for the baby to use formula

LanceH 3y ago

Veering off topic, I started using safety razors for just as good a shave, for 10cents a blade. At ten cents each, I use a new blade every shave and it's so much nicer than a 2nd use top-of-the-line gillette.