Dollar Shave Club

Razor blades are a common example of how a company might implement a captive pricing strategy. A company will lure you in with cheap razor handle, and even a free razor handle, in hopes that you will purchase more replacement blades in the future. With the replacement blades a company can afford to give you a razor for free, and recoup the costs later. After years of using and replacing expensive razor cartridges, I was looking for a solution to save some money on something as trivial as razor blades. Around that time, Dollar Shave Club came around and put out a few videos that went viral. While the video is entertaining, the subscription packages are equally great. Dollar Shave Club offers a number of different handles: The Humble Twin, The 4X, and The Executive. The cheapest blade package starts at just one dollar a month, and comes with five spare cartridges per month. That’s more than enough to last, regardless of how crazy your beard may be.