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The "profit model shift" as explained in the book "Ten Types of Innovation: The Discipline of Building Breakthroughs" refers to a strategic change in the way a company generates its revenue. This shift often involves a change in the company's business model or pricing strategy. In the case of Gillette, once its patent ran out, it strategically began to charge more for its once inexpensive blades. Customers, accustomed to the product, willingly paid more, resulting in a significant increase in Gillette's profits. This is an example of a profit model shift, where the company changed its pricing strategy to boost profits.
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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.
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