Polygon sells its e-book readers at the cost price of $15 each. However, the company makes its profits when users have to download or buy books online. Which of the following business models is Polygon implementing?
A) subscription-based
B) razor-razor-blade
C) pay-as-you-go
D) direct sales

Question

Quizplus · Accepted Answer

Polygon is implementing the razor-razor-blade business model. In the razor-razor-blade business model, the initial product is often sold at a loss or given away for free in order to drive demand for complementary goods. The company makes its money on the replacement part or consumable when needed.

Polygon Sells Its E-Book Readers at the Cost Price of $15