Profit from Shaving

[NatJag]

I just spotted this article in a leading UK newspaper, from last year.

http://www.dailymail.co.uk/news/art...r-heads-cost-just-5p-make-sell-2-43-each.html

I'd also read in another paper that more people are turning to straight Shaving
http://www.telegraph.co.uk/health/w...he-joys-of-the-traditional-barbers-blade.html.

Perhaps the first article explains the reason for the second.

 

[Pumpkin]

That barber's lather looks a bit thin!

 

[mongol]

Wow. Didn't realize the margin on cartridges was that high.

 

[Silverstar]

I just spotted this article in a leading UK newspaper, from last year.

http://www.dailymail.co.uk/news/art...r-heads-cost-just-5p-make-sell-2-43-each.html

I'd also read in another paper that more people are turning to straight Shaving
http://www.telegraph.co.uk/health/w...he-joys-of-the-traditional-barbers-blade.html.

Perhaps the first article explains the reason for the second.

I appreciate this movement. The margin they have is huge and I don't see a justification for the way overpriced cartridges. But no one squeezes you to shave with a M3 or a fusion razor, so why not to exploit the market potential as a supplier?

 

[mrscottishman]

I worked in several factories over the years and have an idea of what things cost to make, especially in the plastics industry. We had a guy that needed a hood release after a wreck that worked at the plant and we happened to make them. This was about 20 years ago. I told him to just get one off the line but not make a big deal about it. He didn't want to do that, he was afraid someone would see him and make an issue out of it, so he checked with the GM dealer on the price. I think it was around $52 and that was probably with tax. He came back and said he wanted to buy one, how much did it cost us to make one? I told him I am not sure what it cost to make, but we sell it to GM for $2.67. I figured we doubled our cost. You got three or four girls running a line and making about $5.50/hr. then and producing over 100 an hour so direct labor would be around around 22 cents each. It was a long time ago and I am close if not exact on the price. Plastic was around 30-55 cents a pound for the common stuff and a pound of plastic goes a long way since it is so light. We bought the aircraft cable by huge spools and that was cheap too, I am sure just pennies for each cable. There wasn't a penny worth of zinc in the die cast connector or steel in the crimp bead. Of course GM had engineering costs, R&D, liability, dealer, transportation costs and patent costs but still that is a good markup. I remember seeing the breakdown on a coke can and most of the cost was packaging and advertising. The product inside was the cheapest thing. My brother owns a restaurant and tells me the food is the cheapest thing he buys. The real costs are in the building, labor, taxes, utilities and such. You pay $7,000 for someone to swap out your burned out freezer unit and realize that would have bought a lot of steak and salad at wholesale prices.

just useless FYI,
mrscottishman

 

[Telecaster52]

A colleague, who has a sinister-sounding German cut-throat complete with leather strap to wipe the blade, describes his shaving ritual, somewhat alarmingly, as his "Sunday morning therapy."

 

[mmack66]

How much profit should P&G be making off of cartridge blades? How much profit is made off of a DE razor blade?

 

[dpmtherrien]

When one really stops and takes a close look at it, is it any wonder why ther is such interest in wet shaving?

 

[andrew98]

How much profit should P&G be making off of cartridge blades? How much profit is made off of a DE razor blade?

If you're P&G, the answer is, "as much as possible." If folks didn't pay the premium, P&G would lower their prices.

-Andy