True Vibgyor Inc.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 True Vibgyor implementing?

Question

Quizplus · Accepted Answer

True Vibgyor 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 needed.