Subscription Based Startups - Dollar Shave Club
Dollar Shave Club, a startup in Santa Monica, Calif., has decided to take the Razor Industrial Complex head-on. Earlier this week, it began selling razors on a subscription model. You pay $1 per month and have five, two-bladed razors delivered to your door. (For $6 a month, you get four-bladed razors and for $9 per month, you get six-bladed razors.) All the products feature aloe vera strips and swivel heads. Ooh la la.
Dollar Shave Club says it partnered with a large razor manufacturer to create its line of products and centers its pitch on the idea that it can give you a good razor at a low price. It also seems to want to capitalize on the idea that men are lazy.
“Do you think your razor needs a vibrating handle, a flashlight, a back-scratcher, and 10 blades?” the company asks in a very funny YouTube ad that has garnered it a lot of early attention. “Your handsome grandfather had one blade and polio.” If Hollywood director and manchild bromance specialist Judd Apatow were a business model, he would be Dollar Shave Club.
Without a doubt, Dollar Shave Club kicks off memories of such legendary dot-com boom fiascos as Kozmo.com, which promised to deliver just about anything to your door in less than an hour, and Pets.com, which seemed to base its business model on a funny puppet. But where Kozmo.com raised about $250 million in venture capital, Dollar Shave Club has taken only $1 million so far from such big names as Kleiner Perkins Caufield & Byers and Andreessen Horowitz.
[Via - BusinessWeek.com, Submitted By Minty Mike]
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