Tuesday, August 23, 2016

Dollar Shave Club Sells for $1B

What makes Dollar Shave Club so profitable and valuable enough for Unilever to want it?

People like subscriptions. No one wants to run out of certain products, like razors or toilet paper. Amazon has offered subscription service on consumables for years. Busy customers like knowing that certain products will be on hand without having to remember to pick them up at their local store. Cosmetics fans look forward to finding out what will arrive in subscriptions like Beauty Box. Even kids and dogs get in on the fun with Little Passports and Bark Box!

Discounts are powerful. Dollar Shave Club offers a great deal on both razors and other products like shaving creams and lotions. Other subscriptions also offer discounts and will point out how much more your items would cost if purchased separately. By “locking in” to a subscription, consumers get better, “bulk” pricing, and the business gets solid, recurring revenue.

So how can your business get in on subscription services? Look at your product line. Are there items that people need or want to buy regularly, like personal care products? Cosmetics and beauty stores would make strong contenders in this space! 

And what about hair and nail salons, or spas, that offer mostly services versus physical products? You can still offer regular customers discounts for scheduling monthly or quarterly appointments in advance. Or, for every appointment you can offer a certain percentage in discounts (4 appointments per year gets you 10% off while 12 appointments per year gets your 25% off!). You can also start a preferred customer club that offers previews and special access to new products before they are available to the rest of your customers.

Whether you are running a salon or spa, or a brick-and-mortar or online cosmetics business, you need branded packaging that conveys the importance and elegance of your products and services. We want to help you develop that brand and get your products into your customers' hands. Contact us to find out how.

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