Firms which sell consumer capital goods are likely to sell the consumable good:

Question

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Firms that sell consumer capital goods (like printers, coffee machines, etc.) often sell the capital good (the main product) at its reservation price, which is the maximum price consumers are willing to pay, to maximize profits from the initial sale. They then sell consumables (like ink cartridges, coffee pods, etc.) at cost or even at a loss, as the recurring purchases of these consumables generate steady revenue over time. This strategy helps in locking in customers to their ecosystem, ensuring ongoing sales.

Firms Which Sell Consumer Capital Goods Are Likely to Sell