Schindler

Schindler learned what Otis and KONE also discovered: elevator companies don't make money selling elevators - they make money servicing them for 30+ years. Founded in 1874, Schindler generates 70%+ of revenue from maintenance contracts, not new installations. This business model works because elevators are mission-critical infrastructure with specialized parts and safety regulations requiring manufacturer-certified service. Once Schindler installs an elevator, building owners face massive switching costs - replacing requires tearing out existing systems. The company's 150-year survival proves that in industrial equipment, the razor-and-blades model (cheap hardware, expensive service) creates more defensible businesses than selling hardware alone.