WEBVTT

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Welcome to the Business Abundance Podcast, providing

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the tools and knowledge to help small business

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owners succeed. For additional resources, visit

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www .businessabundance .online. Hello and welcome

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back to the Business Abundance Podcast. I'm Zee

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and I've got Ron with me. Hello. And today is

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a bit more of an inspiration podcast rather than

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a lesson. We just want to tell you a bit about

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the Dollar Shave Club and about how that's transformed

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or dominated, disrupted? Disrupted is a good

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word. The industry. If you haven't heard of the

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Dollar Shave Club, I think probably the best

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way to introduce it is by playing their ad. Do

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you want to take it away? Hi, I'm Mike, founder

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of DollarShaveClub .com. What is DollarShaveClub

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.com? Well, for a dollar a month, we send high

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quality razors right to your door. Yeah, a dollar.

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Are the blades any good? No. Our blades are f***ing

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great. Each razor has stainless steel blades,

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an aloe vera lubricating strip, and a pivot head.

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It's so gentle a toddler could use it. And do

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you like spending $20 a month on brand name razors?

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19 go to Roger Federer. I'm good at tennis. And

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do you think your razor needs a vibrating handle,

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a flashlight, a back scratcher, and 10 blades?

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Your handsome ass grandfather had one blade and

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polio. Looking good, pop up! Stop paying for

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shaved tech you don't need. And stop forgetting

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to buy your blades every month. Alejandro and

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I are going to ship them right to you. We're

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not just selling razors. We're also making new

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jobs. Alejandro, what were you doing last month?

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Not working. What are you doing now? Working.

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I'm no Vanderbilt, but this train makes hay.

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So stop forgetting to buy your blades every month

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and start deciding where you're going to stack

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all those dollar bills I'm saving you. We are

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DollarShaveClub .com and the party is on. Oh,

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gosh. I don't know if you heard my little I can't

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believe you just let a laugh out like sees here

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with two hands over her mouth trying to shut

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her face. So what can we learn from the app?

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Why are we actually talking about it? Bit of

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inspiration. Obviously they have been very successful

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now with hindsight. They have gone into an industry.

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Most people need blades. Most people shave. Dominated

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by a few key players. Name a few pretty easily.

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So you think it's pretty stagnant margins will

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be pretty low pretty competitive established

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players Figured out how to make Consistent income

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with the subscription base. Yeah, so they've

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broadened a different thing, but this ad basically

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got them 12 ,000 new subscribers in two days

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and I would also like to point out there only

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cost four and a half grand to make so Advertising

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does not need to be expensive. Yeah, and it took

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one day to shoot it. So Uh, no big names. Yeah.

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It just, it's just one guy in a very casual suit

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and um, no PPE. Yeah. Yeah. It's dangerous. Um,

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yeah. So they've basically massively disrupted

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a industry where 70 % of the sales is dominated

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by one player. Um, coming from the side with

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minimal investment, bring something new into

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it. and been very successful. So there's a couple

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of points. One is the model of the business and

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how that works and how that appeals to people.

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The second one is the ad itself has a few key

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points to it. And I think it's the type of ad

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we call is like the everything ad. It's got a

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lot, it's got the testimonials, it's got the

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endorsements, it's got the examples, it's got

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the nice bits on the side. There's lots of different

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types of ads that put into one nice video there.

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Yeah, and they're super relatable. That's the

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most consistent part is they're not pretending

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to be, not people. The bottle in the shower with

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the shaving cream on. Yeah. Which is the traditional,

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you know, little shave. Yeah. Close shave. And

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they're shaving already shaved legs. That's a

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classic. Yeah. So that's the industry standard.

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Yeah. And then they're going, okay, well, what

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have our potential customers, how do they view

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shaving? So this is a pretty interesting thing.

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Like, I don't know what their research was or

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whatnot, but if I'm looking at the ad, people

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don't really care about the shaver. Like, so

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it's a bit of a joke. We're paying $30 for a

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shaver, like with blades, it's gonna last about

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a week before they start rusting or whatever.

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Go blunt. And then we pay another 30 bucks for

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a five pack. And that's just expensive. It's

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annoying. We've got to go to the supermarket

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and get it. There's always a new model. So you

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try that, but it's fundamentally just, you know,

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another blade or a bit more of your pivot to

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another degree or it's got a new color. Who knows?

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That's the change in the industry. So what are

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the customers saying? we don't even really care

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we have to shave we don't like shaving we want

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to shave yeah we like the outcome yeah but we've

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got to keep buying new blades wonder if you ask

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people how many people shave with blades that

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should have been replaced oh so much and then

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you end up with like the um Shave as ration those

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sort of things because you're not looking because

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you can't be bothered going down to the supermarket

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and the supermarket ones are so Expensive and

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you just feel like it's a big cost when your

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grocery bill goes up by like $50 for four raises.

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It's not an extension It's not you see it as

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something that changes your life or you know,

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so it's when you're looking at the money It doesn't

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really make sense. Yeah, but um go for people.

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Yeah, you need to change your bias because you

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better shave but in the same respect when and

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do people want to know. So I don't know what

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the research or what the problems are, like how

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they came across the information, but they're

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looking and the ad sort of alludes to, you don't

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really care about it. You know, these are the

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features we've got, but no one cares. They want

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a good shave. And how can we do that for you

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in the best way possible? And they talked about

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that in the ad as well. Very simple. So what's

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the actual offer? We haven't talked about what

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their business model is. Well, I think it starts

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with the owner who's Michael Tubin, I think.

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What he was looking to fix was he was tired of

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paying too much for razors, and then also the

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inconvenience of having to go to the store to

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pick them up. And so that's why the model is

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send people razors at a low monthly fee. Yep.

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So translation is he probably wasn't looking

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for those two things, but he identified they

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were two things. And then when you start... turn

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that into your business. I was sick of this,

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so it's relatable. So two key problems there.

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And then how would they turn that into a value

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proposition? Well, it's just about making people's

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lives easier. Cheaper and easier. So basically

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the model is you pay 10 bucks a month, or at

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the time there was a few different options. I

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think it might have been six, eight and 10. Back

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there, 10 had the five blade razor. Which they

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called the crew. So they don't just call it their

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products, they call it the crew. Yeah. Or the

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gang, I think it is. We talked about this in

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another episode though, like half my office,

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half the guys in the office at the time signed

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up like on the spot. Yeah. We just done, you

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know, ended up with a lot of extra shaver heads

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because I didn't need them all. Yeah. It was

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a dollar per month subscription. The next day

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when it was back up, they had 12 ,000 new subscribers

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for their one dollar per month subscription razor.

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So I'm not sure that's still the case, but that's

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what happened after they released the video.

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Yeah, went viral and it established a brand and

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then yeah, 12 ,000 new subscribers. Within a

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few days, 3 million people had watched it. It

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racked up about 4 .75 million views in the first

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three months and has over 27 million views to

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this day. Plus one we just did. Yeah, plus one

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and probably four now, me watching it this afternoon.

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So good. So it's interesting because subscription

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models obviously don't work for every business.

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But if you have a product, like we talked about

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in a couple of episodes ago, who gives a crap?

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Subscription based toilet paper. Oh, we talked

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about. Blockbuster in the last episode Netflix

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subscription based. Yep. So subscription base

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is really good But also I probably want to stress

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when it comes to brand voice be human Yeah, I

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think we there's so many businesses out there

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that want to they come across very neutral. Yeah

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professional Yeah, yeah Yeah, well, I guess you

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could argue that this isn't professional in any

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sense. No, it's not but it is It's professionally

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done It is professionally done, great quality,

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but it doesn't alienate themselves from the people

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they're trying to talk to. And I mean, razors

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are not a particularly exciting product, but

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by - They're not trying to appeal to everyone

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here. But they are actually appealing to a massive

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part of the market. Huge. Yeah, because they're

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kind of addressing the really awkward situations

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that happen with these sort of situations. And

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no one talks about it, but they're like, we know

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it happens. So let us show you. And in that,

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it means like I have an ad in front of me at

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the moment where some lady's trying to shave

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her toes basically for summer. And so it's just

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the fact that it's. Just odd and yeah, it's talking

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about it's like yes clean of what it is. Like

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we shave these beats Hmm, but we just making

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it as easy and as cheap for you as possible to

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have great quality result Yeah, no fuss. Yeah,

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so they're looking what's your problem? What's

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your relationship with it? And we're just trying

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to make that process easier for you. It's such

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a simple Yeah, simple setup even their website.

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It only has a couple of pages like it's not extravagant

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You need it don't need to have a thousand pages

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in order to be great be successful. Yeah the

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The part about the subscription, you said, you

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know, subscription can be a good business model.

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Um, I think it's all important to talk about

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that they've gone to an existing established

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industry where that's not a thing. They've brought

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something that's outside of it. One thing that's

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outside of it into it has become hugely successful

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because of it. So we often talk to people like,

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Oh, you know, are you a specialist in our industry?"

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It's like, well, it doesn't really matter. Oh,

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it does because we need to make sure that we're

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doing the best things we can in our industry.

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It's like, no, because the best gains are going

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to be questions that you haven't thought about

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already that your competitors aren't doing. So

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yes, you need to know about your industry. That's

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your job. But if you can bring something that's

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successful elsewhere and make it work where you

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are, you're going to have this huge competitive

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advantage over everyone else. And that's fundamentally

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what they did. It was pretty straightforward.

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Don't want to buy razors. Don't want to pay too

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much. do want to shave, and want it to be easy.

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Here you go, we'll send it to your door. They

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haven't invented anything new there. They've

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just applied an existing concept that's successful

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to a new industry. But the ad itself's kind of,

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good, I might just go back to that for a second,

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because just thinking about it isn't everything

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ad, so there's a few parts to it. I'll see if

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I can get it going again with my limited IT skills.

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Founder of DollarShaveClub .com. What is DollarShaveClub

00:11:30.279 --> 00:11:32.850
.com? Well, For a dollar a month, we send high

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-quality razors right to your door. That's the

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first thing that they mention is actually what

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they do. Who they are and what they do. Yeah.

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So it was a dollar a month. Yeah. But yeah, so

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he's a person. He's looking into the camera.

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This is my name. This is who we're from. And

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this is our offer. So sometimes the other theory

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is we go through all the value and all this other

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stuff and then we say our price. He's saying,

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this is what we do straight up front. Just building

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some trust credibility. This is what I'm here

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about Yeah, a dollar are the blades any good?

00:12:06.490 --> 00:12:10.789
No Our blades are fucking great So they're like

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talking about the quality the quality. Yep. Yep.

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So same but great but we're also narrowing down

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our target market right now because Yeah, we've

00:12:20.950 --> 00:12:24.210
using some bad naughty words. It's true. Yeah.

00:12:24.250 --> 00:12:29.250
Yeah a bit of humor. Yeah, so what is the competition,

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existing competition doing professional ads,

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tone bodies. Yeah, I feel like it's speaking.

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I think that their audience is predominantly

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male. Yep. And so they're 100 % for this one.

00:12:42.610 --> 00:12:44.789
Sort of speaking to that. But yeah, the people

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that don't relate to the current marketing. So

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they've purposely gone straight away from what

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you're expecting from a shaving ad. Yep. Each

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razor has stainless steel blades and aloe vera

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lubricating strip and a pivot head. It's so gentle.

00:12:58.460 --> 00:13:01.679
The toddler could use it and do. It's just quick

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features ability. Yeah. Um, benefit. It's gentle.

00:13:06.779 --> 00:13:09.240
So what does that mean? Like spending $20 a month

00:13:09.240 --> 00:13:12.399
on brand name razors. 19 go to Roger Federer.

00:13:12.980 --> 00:13:19.120
I'm good at tennis. And do you think. So that's

00:13:19.120 --> 00:13:20.799
just a, you know, it's a little bit of a swipe,

00:13:20.980 --> 00:13:22.940
but it's a point like, yeah, you're paying for

00:13:22.940 --> 00:13:26.240
this brand. So it's not saying it's wrong, but

00:13:26.240 --> 00:13:28.840
it's. establishing some differentiation from

00:13:28.840 --> 00:13:30.340
the competitors of, yeah, you're paying this

00:13:30.340 --> 00:13:32.179
premium, but it's not for the better razor. You're

00:13:32.179 --> 00:13:34.960
paying for these things. And I think people can

00:13:34.960 --> 00:13:39.460
quickly relate to that. Your razor needs a vibrating

00:13:39.460 --> 00:13:42.460
handle, a flashlight, a backscratcher and 10

00:13:42.460 --> 00:13:45.139
blades. Your handsome ass grandfather had one

00:13:45.139 --> 00:13:49.779
blade and polio. Just talking about it. I did

00:13:49.779 --> 00:13:51.700
get all the other products saying like, it's

00:13:51.700 --> 00:13:53.659
just not necessary. You don't need to pay for

00:13:53.659 --> 00:13:55.480
it because that's not what gets the job done.

00:13:55.779 --> 00:13:58.539
Yeah. pretty much like, no, of course they're

00:13:58.539 --> 00:14:01.220
lying because there's not so many shavers with

00:14:01.220 --> 00:14:03.960
a flashlight. All black scratches, but they're

00:14:03.960 --> 00:14:07.080
setting a point. Yeah, so let's call a spade

00:14:07.080 --> 00:14:09.500
a spade. But also, again, we're narrowing this

00:14:09.500 --> 00:14:12.019
market down. Like if you can relate to this ad,

00:14:12.679 --> 00:14:14.440
you'll get that's ridiculous. And you're sick

00:14:14.440 --> 00:14:16.820
of paying that much because of all this stuff,

00:14:17.019 --> 00:14:21.200
you know. Looking good, pop up. Stop paying for

00:14:21.200 --> 00:14:23.240
shave tech you don't need and stop forgetting

00:14:23.240 --> 00:14:25.399
to buy your blades every month. Alejandra and

00:14:25.399 --> 00:14:31.120
I are going to ship them right to you. Yeah,

00:14:31.600 --> 00:14:34.100
here we go. Everyone is shaves. Yeah, we don't

00:14:34.100 --> 00:14:36.539
even need blades more often. Yeah, it shipped

00:14:36.539 --> 00:14:39.159
to you every month. We're not just selling razors.

00:14:39.340 --> 00:14:41.620
We're also making new jobs. Alejandra, what were

00:14:41.620 --> 00:14:43.480
you doing last month? Not working. What are you

00:14:43.480 --> 00:14:45.980
doing now? Working. I'm no Vanderbilt, but this

00:14:45.980 --> 00:14:49.059
train makes hay. So trying to appeal to social

00:14:49.059 --> 00:14:51.940
impact. Yeah, social impact. So stop forgetting

00:14:51.940 --> 00:14:53.820
to buy your blades every month and start deciding

00:14:53.820 --> 00:14:55.200
where you're going to stack all those dollar

00:14:55.200 --> 00:14:58.159
bills I'm saving you. We are DollarShaveClub

00:14:58.159 --> 00:15:11.700
.com and the party is on. No, but it's like,

00:15:11.840 --> 00:15:13.720
it's just an example of you don't have to have

00:15:13.720 --> 00:15:16.059
that giant ad, just hit some few key points.

00:15:16.200 --> 00:15:17.899
And as long as they're relatable, when they're

00:15:17.899 --> 00:15:20.279
toned in perfectly to what your customer's looking

00:15:20.279 --> 00:15:23.720
for and relates to, successful. Yeah. Yeah. And

00:15:23.720 --> 00:15:26.740
I giggled the whole way through. So I think it's

00:15:26.740 --> 00:15:29.759
great. Yeah, if there's one thing to learn from

00:15:29.759 --> 00:15:32.980
it, I think it's just encourage you to be human

00:15:32.980 --> 00:15:35.460
and really look at how you're communicating.

00:15:35.539 --> 00:15:38.120
You don't need to come up with a thousand different

00:15:38.120 --> 00:15:40.139
benefits that people won't get. And I know there's

00:15:40.139 --> 00:15:42.879
industry talk and you understand the points from

00:15:42.879 --> 00:15:44.820
your point of view and you're like, oh, well,

00:15:44.899 --> 00:15:47.340
this is, you know, this much better because there's,

00:15:47.419 --> 00:15:49.500
it's this specific and all those sorts of things.

00:15:49.539 --> 00:15:51.879
But if the customer's not going to get it, it's

00:15:51.879 --> 00:15:55.480
not really worth communicating or try and communicate

00:15:55.480 --> 00:15:59.539
it in a way that they do understand it. Because

00:15:59.539 --> 00:16:02.179
then that way you're, they're really being able

00:16:02.179 --> 00:16:05.259
to understand what it is that you do, who you

00:16:05.259 --> 00:16:10.440
are, how you do it. That's an ad. And so I guess

00:16:10.440 --> 00:16:12.519
I just encourage everyone to use that across

00:16:12.519 --> 00:16:14.120
all their marketing, especially when it comes

00:16:14.120 --> 00:16:16.980
to websites and those sort of things. I said

00:16:16.980 --> 00:16:19.299
this just before, but you don't need 1 ,000 pages

00:16:19.299 --> 00:16:23.200
in order to make a good website. They have maybe

00:16:23.200 --> 00:16:27.379
three pages and it clearly shows what they do,

00:16:27.720 --> 00:16:29.929
how they do it. and how the customer can get

00:16:29.929 --> 00:16:32.149
it. Yeah, I think it's a just common recurring

00:16:32.149 --> 00:16:35.750
theme. I really understand what that core is,

00:16:35.950 --> 00:16:38.990
but if you're going to do an ad, it doesn't have

00:16:38.990 --> 00:16:42.490
to be mega. But you do need to know what you're

00:16:42.490 --> 00:16:44.549
communicating. So you've got the text, you've

00:16:44.549 --> 00:16:46.909
got the sound, you've got the visuals. As long

00:16:46.909 --> 00:16:48.929
as you nail that, then you're going to do pretty

00:16:48.929 --> 00:16:52.909
well. Yeah. I'd encourage you all to check out

00:16:52.909 --> 00:16:56.129
the video. It's very entertaining and yeah, we'll

00:16:56.129 --> 00:16:58.090
leave it there and see you next time. See ya.

00:16:58.210 --> 00:16:58.330
Bye.
