Eastman Kodak could sell the Brownie for very little because it knew it could make money on film and photo processing. What would be the best equivalent to this on today’s society?
One of the best equivalents to Eastman Kodak's strategy of selling the Brownie camera at a low cost, with the intention of making profits from film and photo processing today, would be the razor-and-blade business model or the video game console and game model.
1. Razor-and-Blade Model: This model involves selling a primary product at a low or even sometimes at a loss, while making considerable profits from the subsequent sale of complementary products. For example, companies like Gillette sell razors at a relatively low cost, but they generate significant profits from selling razor blades, which need to be replaced frequently.
2. Video Game Console and Game Model: Companies like Microsoft and Sony often sell gaming consoles at minimal profit margins or even at a loss. However, they make substantial profits by selling video game titles and additional accessories that are necessary for the gaming experience.
Both of these models rely on the concept of capturing customers with a low-cost primary product and then making profits from the ongoing sales of associated products or services.