8 ms·
We are in what will be called "the private equity bubble".
by cft 11y ago
We are in what will be called "the private equity bubble".
- babl-yc 11y ago"Dubin claims Dollar Shave Club accounts for 7 percent of all razor cartridge sales in the U.S." I find this hard to believe given that I don't know anyone personally who uses it. But if that's really the case, it's not as absurd given that Gillette was bought for $52 billion in 2005. http://recode.net/2015/06/21/dollar-shave-club-raises-75-million-investment-to-own-mens-lives-inside-the-bathroom/ http://recode.net/2015/06/21/dollar-shave-club-raises-75-mil... http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aA.latPQBrlA http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aA.la...
- Steko 11y agoI'm curious, for how many of your (say) 10 closest friends do you know where they buy their razors? For me I'm going with one; I know one friend who swears by his electric and although I'm sure he also has some sort of low tech option it almost certainly isn't DSC.
- babl-yc 11y agoYou're right, it'd be strange if I did. However, given that they have a referral program I would have expected a bit more buzz for 7% market share. http://www.dollarshaveclub.com/faqs#/faq11 http://www.dollarshaveclub.com/faqs#/faq11
- pionar 11y agoI don't think so. The inverse, 93% of razor cartridges, aren't from them. So you're far more likely to not even have one friend who uses them.
- patmcguire 11y agoThey must be resonating with some group that doesn't really overlap with the HN crowd... I've not seen any advertising other than the original YouTube video.
- dangrossman 11y agoThey advertise on TV, nationally. I've seen the commercials. They also advertise heavily on Facebook.
- jdavis703 11y agoAt first I thought the same thing. But if you'll bear with me for some back of the envelope math, with 2 million members paying an average of $5/month, that means they're bringing in $120,000,000 a year. That's a multiple less than 6x of revenue, hardly that outrageous.
- bbcbasic 11y agoWhat is the gross profit margin on the back of your envelope?
- roel_v 11y agoKey to subscription based businesses are retention and cost of customer acquisition. Which, I predict for this business with no knowledge about the industry at all, are low and high, respectively.
- dudurocha 11y agoThat is a high multiple for a company that sell physical goods.
- kevando 11y agoWe're in a bubble? http://imgur.com/a/GaGtl http://imgur.com/a/GaGtl