What is Hewlett-Packard using when they sell their printers at a loss in order to make a profit on the sale of ink cartridges?
A) bundling
B) customer lock in
C) razor-razor blade pricing
D) penetration pricing

Question

Quizplus · Accepted Answer

Hewlett-Packard is using the razor-razor blade pricing strategy, where they sell the primary product (printers) at a loss or low margin and make profits on the consumables (ink cartridges).

What Is Hewlett-Packard Using When They Sell Their Printers at a Loss