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HP - Highly Profitable (a Gillette inspired business model)

Ever wondered why inkjet printers are so cheap to buy? Well, you find out when you come to buy the replacement cartridges. Check out this photo for my HP 450 (a 3 year old, tres simple inkjet printer) - £60 quid!
HPhighlyprofitable.jpg
Think of HP standing for Highly Profitable, and they got all they know from Gillette, the very first company to practise this razor sharp 'our handle only fits our replacement cartridge' business model.

Another brand that follows this is Nespresso, you can only order the replacement capsules online from nespresso.com, at 50-70p each.

Clearly there is a 'fair price' to be paid to enjoy colour printing or full flavoured coffee, but maybe not quite the prices being charged here. Ditto Gillette Fusion cartridges. Retailing at £2 each, how much do YOU think they cost to make...?

And who are you paying for as part of the purchase price? Three sporting champions, already multi-millionaires. You can be a Champion yourself, or even better, a King.

The future of shaving is coming
WKoHamat 08

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Will King

Will King, Founder, KMI

Will King
Founder, KMI

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This page contains a single entry from the blog posted on April 3, 2008 8:33 PM.

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