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A small business can use the strategy of shifting profit models for growth by identifying and leveraging customer habits, much like Gillette did. Once a product or service has gained traction and customers have developed a habit around it, the business can strategically adjust its pricing model. This could mean charging more for a product or service that was once inexpensive, as Gillette did with its razor blades. However, it's crucial to ensure that the value provided justifies the price increase. This strategy can lead to substantial profit boosts if executed at the right time and in response to the right customer behaviors.
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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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Stop wasting your time on brainstorming sessions that only improve upon existing offerings marginally. Based on exhaustive case studies and research o...
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