Dollar Shave Club: a $4,500 video that asked people to buy, not to wait
The problem
Michael Dubin worked in marketing in New York. Like many men, he was frustrated with buying razor blades in stores, where blades were kept in locked cases and cost more than seemed reasonable. In 2011, a friend's father-in-law needed to clear a warehouse of surplus razor blades, and Dubin offered to help. He saw a chance to sell blades by mail for less.
Listening first
Dubin registered the website within a week and later quit his job to work on the company full time. Early on, he and his team went to regional events, such as the Maine Lobster Festival, to hear how ordinary men talk about shaving and grooming.
The test
On March 6, 2012, at 6 a.m. Pacific time, the company published a short, funny video starring Dubin. It cost $4,500 to make, paid from his own savings. The video did not ask people to join a waiting list. It asked them to sign up and buy.
The result
The company took 12,000 orders on the day the video went live.
What came after
The company announced a $1 million seed round at the same time as the video, so the orders did not cause that first round. Later rounds followed, with more than $160 million raised in total, the latest in November 2015 at a $539 million valuation. By 2016 the company reported more than three million members. In July 2016, Unilever agreed to buy it, reportedly for $1 billion in cash. The terms were not officially disclosed. The sources do not say that the launch video alone built the company, and many factors contributed to its success.
Read it through the Vane evidence ladder
- Compliment
- Casual interest
- Time commitment
- Reputation commitment
- Money commitment
Orders are real purchases, so they are stronger evidence than views, likes or a waiting list. The company still had to prove that customers would stay, so the next question is repeat use. A strong launch day shows demand at a moment in time, and it does not yet show that people keep paying.
Why it worked, and how it connects to Vane
They started from a real, specific annoyance.
Locked cases and high prices were a problem Dubin felt himself and could describe in one sentence.
In Vane: Stage 1, Your idea
They listened to how customers talk.
Going to events to hear how men talk about shaving shaped how the offer was explained.
In Vane: Stage 2, Talk to customers
They made the offer very clear.
One short video explained what it was, why it was cheaper and what to do next.
In Vane: Stage 3, Test your offer
They asked for a purchase, not a promise.
Compare this with a waiting list. People who place an order give more evidence than people who say they are interested.
In Vane: Stage 3, record it as a Money commitment
They kept the test cheap.
The video cost $4,500 from savings. A small test let them learn before spending much.
In Vane: Stage 3, small tests before big bets
They were built to repeat.
A membership that sends blades regularly makes repeat use and recurring revenue the thing to measure.
In Vane: Stage 5, Do they keep coming back, and Stage 7, Making money
What to try in Vane
- Explain your offer in one short video or page, and ask people to buy or pre-order, not only to sign up.
- Write down how many orders you expect before you launch, so the result means something.
- Record every paid order as a Money commitment, then track who comes back.
Sources
Evidence levels and the connections to Vane are our reading of this public story and do not reflect the company's own views. This company did not use Vane. Early validation was one of many factors in its success.