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 m...