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Captive-Product Pricing

Controlled product (or forced product) pricing is a strategy in which products are priced for use with a primary product. The primary product (e.g., printer, razor handle) is often sold at a relatively low price or even at a loss, while controlled consumables (ink, blades) are sold at a high markup.

Conceptually, this strategy is based on a two-component revenue structure: building a large user base for the primary product, followed by a steady stream of revenue from the forced consumables. This method requires careful balancing, as excessively high prices for controlled products can discourage consumers from purchasing the primary product.

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