With the help of a hilarious promotional video that went viral with over 10 million
views, 42 the entrepreneur Michael Dubin launched Dollar Shave Club, an ecommerce
startup that delivers razors by mail. It uses a subscription-based business model. 43 As
the company’s name suggests, its entry-level membership plan delivers a razor and five
cartridges a month for just $1 (plus $2 shipping). The member selects an appropriate
plan, pays a monthly fee, and will receive razors every month in the mail. The entrepreneur
identified the need in the market for serving people who don’t like to go shopping
for razors and certainly don’t like to pay the high prices commanded by market leaders
in razors. The company seems to be off to a great start. After the promotional video
was uploaded on YouTube in March 2012, some 12,000 people signed up for Dollar
Shave membership within the first 48 hours. It also raised over $10 million in venture
capital funding from prominent firms such as Kleiner Perkins Caufield & Byers and
Andreessen Horowitz. It remains to be seen, however, if Dollar Shave Club can disrupt
the $13 billion razor-blade industry where Procter & Gamble’s subsidiary Gillette
holds two-thirds of the world market.