Men's Razors, Buy Razor Blades Online | Dollar Shave Club
Tracy B. Neal stashed this in Startups
Genius business model.... Remove Roger Federrerer endorsement, slotting fees, and brick-n-mortar margins and you have Dollar Shave Club! Gillette, call Blockbuster for some help, quick.
Who's joining? How could you not try it for such little $ risk....?
What's odd is that they use a pricing argument: http://www.dollarshaveclub.com/about-us
It makes me question the quality.
Gillette prides itself on being "The Best a Man can Get".
Does Dollar Shave Club pride itself on being "The Best Value a Man can Get"?
I'd agree with the founders that razor innovations have become a little much... I think the DSC model is solving a few problems for the consumer; 1) price, 2) subscription model for a consumable, 3) convenient early-Netflix-like distribution. Given the generic branding nature of CPG today, I'd find it hard to believe that DSC can't procure a blade that is as high in quality as Gillette.
Also, the barrier to entry for this segment isn't technology or manufacturing costs or even distribution, it's relationships with the retailer network. The start up costs are much less for DSC by going direct through online subscription... than trying to fight their way into Walgreens, CVS, Rite Aid, Kroger, Safeway, Costco, and Walmart.
I think the $1 entry level is a nice bait & switch... I actually signed up for the $6 plan, which happens to be the "middle" pricing preference, which is predictable consumer behavior.
$1 isn't really a dollar because you have to pay for shipping and handling.
So yeah, they're trying to drive you to the middle price.
Clever way to overcome the distribution barrier -- use the Internet!
And yes, I'm a member, I signed up tonight. I'll provide a user review pending delivery...
I did not find their prices compelling for such a wonderful idea.
Tracy, I'd love a review.
Jared, I agree with you, the price wasn't one that made me want to buy,
I feel like I'm getting a better deal at Costco, frankly.
I was just thinking last week I wanted to try this. Somebody want to send me an invite so you can get the referral bonus ?
As it turns out, I know Mr DSC himself, Mike Dubin, for a long time and know the backstory for how this company got started. So I'll keep quiet and continue reading this discussion with interest :-)