The Dollar Shave Club, which is a company based in California, has just scooped up $9.8 million dollars in venture capital funding for their discount discount razor shaving services.
Large corporations that sell razor products, like Gillette and Schick, don't make the bulk of their profit from selling razor handles. Instead, it's the expensive blade refill cartridges which generate a large and steady stream of revenue.
However, one company is hoping to change the game and cut into the profits of these large corporations. The Dollar Shave Club sells high quality no-name brand razors and operates on a membership model that provide a variety of three subscription plans. Their slogan is "Shave Time. Shave Money."
On the basic 'Humble Twin' plan, you'd receive five twin-blade refill cartridges every month. If two blades doesn't cut it, you can also sign up for the '4X' and 'The Executive' plans for four four-bladed refills and three six-bladed refills respectively.
Although the Dollar Shave Club's services are currently exclusively available in Canada, I'm certain that this cutting-edge business will do well in its future plans to expand internationally.
Implications - By using a different business model than the traditional razor and blade business model, the Dollar Shave Club can potentially change the way businesses sell complementary goods from typical freebie marketing to a membership-structured business model model.
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