Latest / The Pricing Marketing Podcast with Fexingo: Price Anchoring, Bundling, and Conversion Pricing
How Subscriptions Changed the Price of Razors
Dollar Shave Club didn't just disrupt the razor market — it rewired how consumers perceive the price of a blade. Before DSC, the average cartridge cost four to five dollars. DSC's subscription model made that same cartridge feel like a steal at two dollars. But here's the twist: the company wasn't selling cheaper blades. It was selling convenience and a new price anchor. This episode unpacks how DSC's pricing strategy broke a duopoly, the role of the 'free-razor' anchor, and why Unilever paid $1 billion for a company that never made a profit on its core…
The skinny
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