Saturday, March 24, 2012

Small business success

A screenshot from the video.
While it may sound a bit premature to start talking about success as a small business when it has only had its doors open for a few weeks, there are sometimes events which highlight what it is to be successful.  The company Dollar Shave Club has had monumental success with a YouTube video since it was put online.
The company is reported to have only 5 employees and works off of the premise that good quality razors can be marketed to men on a monthly subscription basis.  When a customer chooses a plan with the company, they are sent the model razors on a monthly basis as long as they are signed up.  The YouTube video is basically a commercial for the company, shot with a budget of $4,500, and takes place in the company's warehouse.  The founder of the company Michael Dubin uses jokes, humor and an honest opinion of his company.  The surprising results of the YouTube video show how viral marketing, when it works, can be incredible.  Since the video was posted on March 5 there have been nearly 3.7 million views (as of March 22).

Before you continue on, there is a word of warning about the video.  Dubin does use the F word in his exposition about his company's razors.  It is censored out in the audio and when he points to a poster with the same words, some of the letters are replaced by asterisks.  The title of the video is also censored out with asterisks in the title.  If you have any recriminations about watching a video which casually uses such a strong swear word, please do not watch the video.

According to an article from Time Business reports that there were a total of 5,000 new customer sign ups the first day the video was posted.  The company has several models of razor available with the cheapest plan being $1 a month, shipping not included.  There are two higher models of razor available each with shipping included for $6 and $9.

An article from Fastcompany.com estimates that with the amount of video views Dollar Shave Club could net a million customers in a year.  As the article states, "assuming $5 per month as an average, this Santa Monica-based entrepreneur will have a $60 million business in 12 months."

This is a great case to show that sometimes creativity can be the gateway to your business success.  Something out of the ordinary can stand out and get you noticed.

You can read the entire article from Time Business here.

You can read the entire article from Fastcompany.com here.

Both of the news articles contain the video from YouTube but if you have an interest in seeing the company website it can be found here.