# How many products use the "razor blade" business model?

**URL:** <https://boards.straightdope.com/t/how-many-products-use-the-razor-blade-business-model/968160>\
**Category:** Miscellaneous and Personal Stuff I Must Share\
**Created:** [July 18, 2022, 6:26pm UTC](https://boards.straightdope.com/t/how-many-products-use-the-razor-blade-business-model/968160 "2022-07-18T18:26:48Z")\
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**Author:** ![Cervaise](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/cervaise/32/16693_2.png) [@Cervaise](https://boards.straightdope.com/u/Cervaise)\
**Post date:** [July 19, 2022, 7:22am UTC](https://boards.straightdope.com/t/how-many-products-use-the-razor-blade-business-model/968160/8 "2022-07-19T07:22:25Z")

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It’s not _quite_ the same thing, but luxury-level carmakers are introducing something along the same lines. They don’t sell the base automobile at a loss, but they are trying to switch over to an ongoing-revenue type of model, where activation of key up-sell features is supported by monthly subscription rather than a one-time installation fee like it used to be.

> **[BMW Responds to Fury Over Heated Seats Subscription Fee](https://www.thedrive.com/news/bmw-responds-to-fury-over-heated-seats-subscription-fee)**
>
> The automaker charges for the use of pre-installed hardware in some markets, and people still aren't happy about it.

A friend who works on the floor of an auto manufacturer opines that this is less about changing the revenue stream, and more about saving money during manufacturing. It’s cheaper, he says, to make every single car exactly the same way, with all common features included, than it is to accept buyer-customized orders via dealers that require individual cars to receive individual attention on the line. He’s on the floor, though, so he’s not directly privy to management strategy, and he concedes this is just his opinion. Still, it makes sense.

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