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Selling Products Without Optional Safety Equipment

By Larry E. Coben

The American consumer is bombarded with TV, Internet and print advertisements extolling the features of thousands of products ranging from motor vehicles to smartphones. Today's marketing practices focus on the most distinct features of each product and barely mention that many of these features can only be acquired if the consumer selects the most expensive version of the product.

In marketing parlance, some have referred to this as the “freemium” business model (a combination of “free” and “premium,” Kumar, V., “Making 'Freemium' Work,” Harvard Business Review, May 2014). Sellers manufacture a base product and then offer add-ons or optional features that jack up the purchase price by a significant margin.

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