You are familiar with Dollar Shave Club. Prior to being acquired for $1B in 2016, they produced $240M in sales annually.
How is it possible to make this much money off of a $1 product?
- The $1-dollar shave is an attention-grabbing, disruptive claim.
- There were three options available when you visited their website: $1/m, $6/m, and $9/m.
- Boom! Their $6 and $9 models accounted for 73% of their total sales.
Bonus: How does McDonald’s earn money from a $1 cheeseburger if it costs $1.91 to bring in just one customer?
They also include Coke and fries for an extra $1.14.
Finally, the fries and beverage account for 86% of the revenue.
Source: JacobMcMillen