How a $1-product generates $240M in revenue

I’m sure you’ve heard of Dollar Shave Club. They were bringing in $240M annually before they were acquired in 2016 for $1B.

How is it possible to make so much money off of something that costs only a dollar?

A one dollar shave is a bold statement that is sure to get people’s attention.

There were three pricing plans displayed on their website: $1/month, $6/month, and $9/month.

3. Boom! The $6 and $9 prices points accounted for 73% of total sales.

What’s the catch? How does McDonald’s turn a profit on a $1 cheeseburger if it costs them $1.91 to acquire one customer?
Additionally, they have the fries and drink for an additional $1.14.
The final sales of fries and soda account for 86% of the total profit.


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