Bait and hook

The bait and hook model is very similar to the razor and blades model. The only difference is the customer pays the cost price for the main device, whereas he/she receives it for free with this bait and hook model. The consumables are then sold with a higher margin in order to compensate the purchase costs of the main product.

A well-known example is:

  • Mobile phone plans with free device

Before you start

  • Ensure the usage of consumables is high enough to cover the recruitment costs and beyond.
  • Ensure consumables can be produced at a large scale and at low cost

How to start?

  • Test the offer on a limited audience

What are the key success factors?

  • Maintaining a high level of usage of the consumables
  • Sustain the usage of the same main device as long as possible

How to cope with threats?

  • Customers may use the device with alternative consumables.
    • Make it technically impossible for the device to use other consumables
    • Make the possibility of using other consumables your USP

    • Create special offers in collaboration with alternative consumables

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