Gillette's shift in profit model had significant implications on its profit boost. Once its patent expired, Gillette strategically began to charge more for its blades, which were once inexpensive. This was based on the understanding of its customers' usage habits, who didn't think twice before paying more for a razor that would soon dull and be discarded. This timely shift in profit model resulted in a substantial increase in Gillette's profits. It demonstrates the power of understanding customer behavior and adjusting business models accordingly for maximum profitability.
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Once Gillette's patent ran out, however, it was time for a change. Gillette took advantage of its customers' user habits and strategically began to charge more and more for the once inexpensive blades. Without thinking twice, customers began to pay a lot for a razor that would soon dull and be tossed aside. Gillette enjoyed substantial profit boosts as a result of its timely shift in profit model.