Wednesday, March 20, 2013

Razor Makers: Loyalty from the "sunk cost" fallacy

Man. What a product category. How confusing and how expensive.  I know women argue that feminine hygiene is an unfair marketing business but this is pretty harsh too.

Guys like a system. They like to have interchangeable parts and not feel they've wasted any energy.
The Ryobi one+ range has tapped into that in a positive sense.

One battery for your drill, angle grinder,  torch,  radio,  hedge trimmer and dozens of others.

And the dark side. Razors. How confusing:

 And we are aked to pay about $13 for four razors. And we do it because we bought a handle. Like one of the ones I gathered together in a minute in my bathroom:

But then I played the "screw you" move and bought a Coles entry pack for $7 and four cartridges for $6.

I think these companies are trading on the "sunk cost" fallacy. I spent some money on a handle so it'd be stupid to buy another handle. Perhaps that's why I have so many handles.

But behabioural loyalty (the propensity to buy the same brand repeatedly) is often driven by inertia. What generates more inertia than being signed into a system where you think you're "wasting something" by getting a secong handle.

Don't worry, I get caught too. I just bought a Digital SLR camera and drfited strongly towards Pentax. I have two Pentax lenses.

We're all a part of the game. Sometimes we play, sometimes we're played.

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