landiaworld.com ENGINEERED TO LAST No. 449 – Pumps & Mixers The pitfall of two-part pricing by Soren Rasmussen | Febuary 2018 A friend asked me how many propellers my company had sold. “Well”, 1 replied, “we’ve sold housands of submersible mixers, but actual propellers, about 1 9 or 20: He asked, “Today? This week?” “No, since we started working in North America, 25 years ago:’ He was shocked, but I explained that our business is not spare parts, it is products that last. The ‘razor-and-blades’ model The idea of selling a main unit that requires frequent replacement of critical elements can be referred to as two-part pricing. In its current commercial form, it dates back to1895, when King Camp Gillette invented the disposable razor blade. This pricing strategy became so

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