Most of the time, making lower price the foundation of your marketing & branding is a horrible idea. Another company could come along & just make their...View More
prices lower. Plus, it's harder to maintain larger margins. Yet, Dollar Shave Club is doing exactly that, making price differential their big draw & they seem to be killing it (they even have TV commercials now). So, why are they the exception? Well, they're in a unique industry that just so happens to be 99% populated by corporate brands who have high markups. Dollar Shave Club saw the opportunity to be the first widely known brand to cut razor prices drastically while still maintaining quality & creating a kickass brand personality. If they weren't the first, it would be a different story, but they've got first mover advantage & luckily, the razor-making business has rarely been attractive to entrepreneurs. If someone comes along with lower pricing, they may take a hit, but those companies will have a lot of work to do to get there. This ad represents their price-beater comparison-driven marketing. It helps a lot that they often inject humor.