Ep.307 Nespresso’s Razor-Blade Moat: Recurring or Bust

Nespresso doesn’t make its fortune on coffee machines—it makes it on pods. That’s the razor-and-blades model: lower the upfront barrier, profit from repeat behavior. Every pod is a tiny annuity. Once the machine is on your counter, switching feels expensive—and that’s by design.The magic isn’t just revenue; it’s habit and data. Nespresso owns the ritual, not the gadget. That’s how you turn one-time buyers into lifelong subscribers.Today’s move: Map your “pod.” What do customers buy monthly after the first product? Bundle starter kits that build 30-day habits. Track MRR and churn like your business depends on it—because it does.🎧 Listen now to Good Morning, Money! — daily insights turning business models into predictable cash flow.Send us Fan Mail