The Wall Street Journal’s Smartmoney.com published an article called “Does Dollar Shave Really Save?” The main idea of the article is trying to determine if the YouTube sensation is it a good deal?If you remember I did a post a few weeks ago (here) in which I did the math, and determined that Dollar Shave Club does save money compared to Gillette. However, Smartmoney.com compares Dollar Shave Club to Dorco and it turns out Dorco is a better deal. No real surprise there. Dorco is a low-cost provider. What I found interesting is that according to Smartmoney.com “Dorco appears to be the supplier for most of Dollar Shave’s blades. Ken Hill, president of Dorco USA, said his firm sells Dollar Shave Club the four- and six-blade razors that are used in its packages, but not the Dollar Shave’s two-blade option.”
In a good public relations move, Dorco posted the story on their Facebook page. I believe Dorco is walking a thin line. They obviously can’t say that Dollar Shave Club razors are not quality because they are a supplier. They need to remain focused on discredited Dollar Shave Club as a money saver and convincing people that the convenience of delivery isn’t worth the extra money. Dorco sells that same amount of razors for up to 75% less. It seems like Dorco is trying to deflate the hype Dollar Shave Club was able to produce with their viral video campaign.
Overall, Dorco and Dollar Shave Club have separate target markets. Dorco is the best deal, and people that like cheap products tend to seek out the best deal. Dollar Shave Club, I feel, is more of a trendy crowd that likes the convenience of home delivery.
I plan on buying razors from Dorco the next time I need some. Mostly just to try them out. This has been fun following this story. I’d love to read your thoughts and comments. In conclusion, I was contacted by the marker of this video blog and asked to share it. I think it is really well done. Enjoy…