engine - 2:28 pm on Sep 7, 2012 (gmt 0)
It's worth a read through on this, even though there are no secrets revealed.
Amazon's Jeff Bezos On Making Money With Low Prices [allthingsd.com]
We do not like the razor and razor blade model, where you lose money up front and then somehow make it up on the backend. We also do not like the other model, where you make a lot of money on the device, because it doesn’t follow our approach.