Phrase/word between "bait-and-switch" and "additonal sale"

Question

Is there a phrase or word to describe when you sell something small in order to establish a business relationship, build confidence and establish a market/infrastructure in order to sell consumables, service, other products or similar later on?

Bait-and-switch is wrong because what is being advertised is what is being sold, at the advertised price and there is no requirement for further purchase but its main purpose is to increase other sales. Selling razors or ink jet printers cheap in order to make money off razor blades and ink cartridges later on are typical examples.

EDIT: A slightly better example might be an auto manufacturer, since razors don't come in very different price steps. Suppose Honda pushes in a developing country to win a cyclist over to using a moped. Once they have made the step to using a motorized vehicle, they have established a relationship with the customer and they grow accustomed to it. From there, they can sell consumables for the moped and a new one once the first wears out but furthermore a motorcycle or even a car at a higher price. The initial moped was a real product and not sold at a loss, buy they have a grander scheme of offering an entry level product to the market.

Answer 1

I believe this type of thing is called a "loss-leader" - supermarkets use the tactic to draw consumers in on the promise of a few of their product lines being cheap - knowing that in the course of their shopping - customers will probably buy other goods at higher prices. Another description is that of "upselling"which is another tactic used by online retailers who tempt buyers with a small purchase and then - at the point of ordering - try to sell additional items which are usually higher in price.

Answer 2

You probably mean lock-in, though the initial sale triggering it is not necessarily something small. When a sale causes a lock-in condition, the buyer is forced to buy more from the same entity in future to continue enjoying their initial investment be it through consumables, spares, upgrades or maintenance services.

ODO:

lock-in NOUN

1 An arrangement according to which a person or company is obliged to deal only with a specific company.

‘This creates a lock-in condition for the customer, which means higher costs for upgrades, service and expansion.’
‘The customer base is an important element of market power for aircraft manufacturers since there is at least to some extent a lock-in effect for customers once their initial choice of aircraft is made.’

Answer 3

Gary Cooper's recommendation of up-selling comes close, but since the seller's goal is to keep you buying more things over a period of time, the more accurate term would be cross-selling.

Up-selling usually refers to getting a customer to purchase a more expensive version of what they came for, or extra accessories. Examples would include the sport/limited edition of a car, a cover and insurance for a tablet computer, or "fries with that."

In cross-selling, salespeople target existing customers and tell them how great this new thing they have (camper trailer, motorcycle, certificate of deposit) goes with the truck, moped, or checking account they already own. (Of course, the customer has to know this is happening, otherwise the salesman might be working for Wells Fargo. [obsnark])

Answer 4

What the company is doing establishing brand loyalty which is the tendency for a customer to buy products or services made by or provided by a specific organisation.

Brand loyalty is often thought of as loyalty to a manufacturer (Jane always buys Ford cars, Andrew always drinks Budwiser beer) but it can also apply to retailers (Karen always shops at Wal Mart) and even insurance and banks. In fact retail banks have some of the most brand-loyal customers of all organisations. This is probably the reason why banks have, in the past, offered good deals to students because graduates tend to be higher earners and, because of brand loyalty, they have the students as customers long after they have graduated.

Answer 5

A search for King Gillette (the founder of Gillette razors and inventor of this business model) led me to this description of the model:

Freebie marketing

Freebie marketing, also known as the razor and blades business model, is a business model wherein one item is sold at a low price (or given away for free) in order to increase sales of a complementary good, such as supplies.