Somewhat a shocking news on DSC vs. Schick

Hello gents,

Here is a strange news article on DSC vs. Schick. Interesting and shocking indeed. Leave your comments if you like.

http://time.com/money/4024897/dollar-shave-club-passes-schick/


Thanks and have a good day.

 

And, still not profitable.

 

Quite weird isn't it?

 

But the executives are making a bundle. Watch them leave in a year or two, with some nice Golden Parachutes.

 

The reason why it is not making a profit now is simple. It is the same reason that Gillette had profitability issues at the beginning of the last century.

Sell volume at margin or slightly below cost and capture enough market share through customer loyality. Evenually the volume will reach break even and then slowly raise prices enough to hold the market share and make a longer lasting profit at the later date.

The question is does Gillette and Energizer Schick make price cuts to reduce their eroding market share? That will determine how this plays out.

 

I don't believe it until I see an independent audit of their sales. KOS stated they were going to achieve high numbers but managed only around 5% in the end.

 

He likely didn't start DSC to help fellow shavers. He started it to get a yacht and a Rolex.

 

I really don't understand why Yacht is such a necessary thing to acquire. All the rich people run for it.

 

Yeah, you really want your own private cruise ship....

 

Now if lawyers at Schick come with a lawsuit, asking for a proof that DSC really has overtaken the sales, I'll find that clash very entertaining.

 

You know what, the only thing I have to day for dsc is that for the two years I used them I spent under $40 for everything and I still have two boxes left. Now 2+ months into wet shaving and I have tripled that.
However I look forward to shaving now unlike before....

 

One huge difference between DSC and Schick is that Schick designs and manufactures its own cartridges. DSC rebrands Dorco. From a semantic standpoint, that raises the question if DSC can really claim to have "the second-best selling razor cartridge in the U.S." when it isn't really their cartridge. Of course, sales are sales, but the manufacturer/rebrander distinction raises a potentially more pressing issue for investors: DSC doesn't market a product so much as a sales model; they aren't a razor company, but a subscription retailer masquerading as a razor company. Would their success be threatened if more customers realized they could buy the same razors for less money on Amazon, and not have to enter a subscription agreement in order to get them?

No matter where they are sold, Schick razors are Schick razors. If people like them and buy them, Schick ultimately benefits from that purchase. But DSC razors are not really DSC razors. People could still buy the razors while cutting DSC completely out of the loop. That strikes me as a potentially shaky foundation for DSC's long-term success.

 

@Jerry-built Hustler : Sometimes I do wonder if Dorco is simply entering the international market using DSC as its mask. Maybe they have a sales goal after which DSC will be taken over by Dorco. As always, I'm surmising.

 

Another detailed article on the same subject:

Dollar shave club vs. schick

In last paragraph, the "friendly fire" term made me chuckle

 

Thanks for the info @Jerry-built Hustler. Who(what company) actually makes the razors/blades was one of my questions? Does DSC offer just carts without the handle and will the 2 blade heads fit a Gillette Trac2 or one of the after market handles? I used to get store branded Dorco twin carts 10 for $5 at the grocery store and I could get 5 miserable shaves out of each cart.
One thing you can pretty much make bank on is that as soon as DSC begins to make money the prices will go up and if it's possible the quality will come down. It's kind of surprising to me or maybe it's just arrogance that Schick or Gillette doesn't simply offer the same deal and run DSC out of town?
Oh well it doesn't really make any difference to me since I use single bladed DE period!! : The cost per shave and impact on the environment in terms of waste product are considerably less and the closeness and comfort of my shaves are considerably MORE!

 

Wouldn't Gillette be fighting itself? In India and even in Pakistan (my country), almost all the DE blades available in market, are manufactured and marketed by Gillette.

 

True, but the US situation is almost the inverse of that scenario. Gillette achieved market share dominance decades ago, and has held onto it almost unfailingly. However, DSC and others are starting to make inroads, suggesting Gillette's approach may not be working as well as it had been. I think price is the issue. Gillette has tested the limits of what people are willing to pay for "the best a man can get," and I think they've found the limit. Unfortunately for them, finding the limit is a bit like testing how hard you have to press into a tire with a knife before you pierce it. Gillette may have crossed a line they can't uncross without making some real changes.

Then again, you make a good point about the US market versus the global arena. Perhaps in the grand scheme of things, DSC is little more than a gnat buzzing around Gillette's head. (Schick's, too.)