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What is the Bait & Hook (business model platform)? Example?

User Magnattic
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Final answer:

The Bait & Hook business model involves offering a basic product at low cost to lure customers into buying additional high-margin services. Printers and ink cartridges are a classic example, where the printer is sold cheaply while the ink is sold at higher margins.

Step-by-step explanation:

The Bait & Hook business model platform is a strategy where a company offers a basic product or service (the bait) at a low cost or even for free, with the intention of persuading customers to purchase additional products or services (the hook) at a higher margin. An example of this model is printer companies selling printers at a low cost while pricing the ink cartridges, which are a necessary recurring purchase, at a higher margin. This model is also prevalent in software companies offering a free basic version of their product with the option to upgrade to a premium version with more features.

User Daniel Broekman
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