Question about prices of blades back in the 1920's-1970s.
- Thread starter polod
- Start date
Here is a great read , it will give some insight. http://www.techdirt.com/blog/entrep...035/the-myth-of-razors-and-razor-blades.shtml....
While "Gillette" is often credited with the "Razor-and-Blades" marketing method (give the razor away and make gobs on the blades) their original model was quite different.
The first Gillettes retailed for $5 in an era when a middle-of-the-road straight razor sold for $3. King Gillette's dream was to invent a product that also produced future sales of a consumable item, much like the bottle cap company he worked for at the time, but not to give away the razor in the process.
Just prior to the original patents running out in 1921, and with the threat of other companies jumping into the razor business and underpricing Gillette, they started marketing the "Old Type" as an entry-level "price point" product between one and two dollars, while introducing the "New Improved" razors at the customary $5 price point.
In the early 1930s, during the Great Depression, Gillette actually did give away razors with the purchase of blades. This was during the Great Depression, and right after the company was taken over by Auto-Strop. The "Goodwill" razors were produced cheaply, using some parts left over from prior Old Type production. The razors were designed so that they could only be used with the "NEW" Gillette blades, which were protected by patent and retailed at a higher price than other manufacturer's three-hole blades. This ensured a ready-made market for ongoing sales of the profitable NEW blades.
Once that die was cast, the rest was history. Today, one can still buy a new Gillette razor (complete with blades) for just a small premium over the price of the replacement blades.
The first Gillettes retailed for $5 in an era when a middle-of-the-road straight razor sold for $3. King Gillette's dream was to invent a product that also produced future sales of a consumable item, much like the bottle cap company he worked for at the time, but not to give away the razor in the process.
Just prior to the original patents running out in 1921, and with the threat of other companies jumping into the razor business and underpricing Gillette, they started marketing the "Old Type" as an entry-level "price point" product between one and two dollars, while introducing the "New Improved" razors at the customary $5 price point.
In the early 1930s, during the Great Depression, Gillette actually did give away razors with the purchase of blades. This was during the Great Depression, and right after the company was taken over by Auto-Strop. The "Goodwill" razors were produced cheaply, using some parts left over from prior Old Type production. The razors were designed so that they could only be used with the "NEW" Gillette blades, which were protected by patent and retailed at a higher price than other manufacturer's three-hole blades. This ensured a ready-made market for ongoing sales of the profitable NEW blades.
Once that die was cast, the rest was history. Today, one can still buy a new Gillette razor (complete with blades) for just a small premium over the price of the replacement blades.
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