CAPTIVE-PRODUCT PRICING Some products require the use of ancillary or captive
products.Manufacturers of razors and cameras often price them low and set high markups on
razor blades and film.42 AT&T may give a cellular phone free if the person commits to buying
two years of phone service. If the captive product is priced too high in the aftermarket,
however, counterfeiting and substitutions can erode sales. Consumers now can buy cartridge
refills for their printers from discount suppliers and save 20 percent to 30 percent off the
manufacturer’s price.