It all started with a really, really good advertisement. In 2012, a Dollar Shave Club commercial released which was both humorous and logical.
In the video (which you can watch below), the CEO of DollarShaveClub points out how silly it is to spend lots of money on razors and razor blades.
It doesn’t take much to make this very valid point.
Razors are expensive and they are a consumable product that must be replaced regularly. The CEO goes on to encourage potential customers to sign up for his monthly razor subscription so that they can save themselves money.When you think about it, this business model is
When you think about it, this business model is genius. As some say, “the proof is in the pudding,” And, the proof is certainly there. Dollarshaveclub.com earned a whopping $72 million in approximately 3 years.
Talk about doing something right!
Not surprisingly, the Dollar Shave Club commercial went viral.
Part of the company’s rampant success was knowing from the get-go who their target audience would be; young men who cared as much about their wallet as they did their appearance.
In the video, the founder of DollarShaveClub gives a solid argument as to why someone should join the Dollar Shave Club subscription razor box.
The reason? Because it makes sense!
The product is good. The price is even better. And, that makes it a smart decision for any person who has hair they wish to remove from their body.
Dollar Shave Club ended up selling to Unilever for a billion dollars. This massive sale of the company occurred because of a few factors. The founders knew how to use marketing, recognized the value of the product, and found a way to make it affordable for consumers (while also cost effective).
Their business model should be studied by any start up business trying to get up and running.