Is Gillette in Trouble?

Gillette, the world leader in system shaving blades, will have to face some competition from a new startup called Dollar Shave Club. The startup seeks to provide consumers with $1 razors shipped to their homes (plus $2 for shipping and handling) only in the USA.

Like most good ideas, The Dollar Shave Club started with two guys who were pissed off about something and decided to do something about it… So… they teamed up with one of the world’s leading blade manufacturers and created signature 2, 4, and 6 blade razors. They’ve got everything you need in a shave: stainless steel blades, lubrication bars, and pivoting heads.

Dollar Shave Club is aptly named: You pay a dollar and you get a month’s supply of twin-blade razors shipped to you. That’s right. $1. A few more dollars and you get a few more blades. The top of the line is the “executive” where you get a month’s supply of six blade razors for $9 a month.

According to Michael Dubin, CEO and founder of Dollar Shave Club, the vast majority of that is going to marketing, as companies like Gillette and Schick work hard to hang onto marketshare in a massive industry, paying athletes and actors exorbitant endorsement contracts. Dollar Shave Club is stripping all that out.