Without a doubt, one of the most brilliant product launches and success stories of the last decade was Dollar Shave Club.
With an irreverent video and ad campaign, two guys who met at a party and expressed their mutual frustration at the cost of razor blades (honestly, how boring must that party have been?) created a disruptive company that five years later sold for $1 billion. Yeah...pretty freakin' brilliant.
But, the brilliance has dimmed and faded. It has been marginalized by a corporate need to maximize profit at every turn. Not that such a goal is bad. But, for the consumer, it's frustrating.
Let's break it down. I love their razors...but they were showing up in my mailbox too often. I don't typically need 4 razors a month. When I'm home, I tend not to shave. When I'm on the road with clients, I do. So, I had racked up 12 razors...and they just kept coming, month after month after month.
So, I took a break. And, in the time it took to go through those 12 razors, the company sold to Unilever...and now, it wasn't the Dollar Shave Club anymore. It was the $40 Dollars for Razors, Shave Butter, Butt Wipes, Shampoo, Body Wash and Toothpaste Club.
Which is FINE. And I wish them WELL. Really.
But, I keep getting "Come Back" e-mails that offer no path to rejoining the Club I loved unless I agree to the butt wipes and the toothpaste.
Worst? Their $9 for all that stuff starter offer I got today? Fine. Send me a bunch of crap I'll throw away. 4 razors for $9 is still a deal.
But, to get that deal, they'll be sending me the $40 batch of unwanted extras...on March 26. Exactly two weeks from now. And now, I'm paying more for the razors I crave than suffering with the price of store bought.
Dollar Shave Club? You had me at Hello. You lost me when you decided you weren't the Dollar Shave Club.
But, this isn't "goodbye." This is "not now." Show me a path to just buy your razors...and maybe, in time, I'll consider your butt wipes.
Just a thought...
Maybe this is the "new math" in a real life setting. Mike wants to charge Bill $40 for things Bill doesn't want. Bill wants to pay Mike $6 for something he does want that Mike still sells, but packaged with the $40 stuff Bill doesn't want. Mike doesn't want Bill's $6, so instead Bill pays Mike $0. Mike still makes money hand over fist. Solve for "x."
Posted by: Aaron Buzza | March 14, 2019 at 07:11
Exactly...and, I'd love to know what their "x" is. My gut tells me that they are benefiting from consumer laziness (guys who just let their subscription roll). And, yet, they've recently pivoted to promoting "every other month" plans...so, I don't think I'm all that different from what they are experiencing. You hit it on the head, though. I'm willing to pay $6 (hell, I'm willing to pay anything under retail)...and they are getting $0. How long can Unilever maintain this strategy?
Posted by: Bill Geist | March 14, 2019 at 08:24