Dollar Shave Club--The Next Evolution of the Razor-and-Blades Business Model

I love Dollar Shave Club. I've been a member since the beginning and have been beyond satisfied with the quality of the razors, especially for the price. As a user of the middle-tier 4X I pay just $6 for 4 cartridges! This is less than half the price of any leading name-brand razors. Suffice it to say I am hooked. Why would I go back to paying more when they conveniently ship me a new pack every other month? 

But now the game has changed and DSC appears to be taking a page from its thoroughly disrupted competition's playbook. Wikipedia defines the razor and blades business model as "a business model wherein one item is sold at a low price (or given away for free) in order to increase sales of a complementary good, such as supplies." This namesake business model is in full effect as they continue to add new products in an effort to take over my entire bathroom experience; blades are the new handles, and accessories are the new blades. 

The expansion began slowly at first when they rolled out shaving cream and after shave. $8 for a tube of Shave Butter. $9 for the Mangnanimous Post Shave Cream. While not off the charts, these are a far cry from the bargain they reeled me in with. Lately the new products are coming even faster: $7.50 for 2 two bars of soap. $9.50 for a bottle of body wash. $4 for a single lip balm (or just $6 for two, to be fair.) 

They're a brand you want to love, and they managed to be affordable without seeming cheap. Now that they have 10 million members they are moving decidedly up-market, which may have been their plan all along. A pretty clever way to beat the competition at their own game.