The Razor & Blades Revolution
How a disposable idea forged a permanent business model that changed commerce forever.
A World in Need of a Shave
Before Gillette, shaving was a dangerous, inconvenient ritual dominated by the straight razor. This created a massive opportunity for disruption, not just in product design, but in the entire business of grooming.
The Barbershop's Decline
The safety razor didn't just change home routines; it decimated a key revenue stream for barbers. The convenience of a safe, at-home shave meant fewer men outsourced the task, fundamentally altering a centuries-old institution.
Barbershop revenue from shaves plummeted from
50% to 10%
following the safety razor's rise.
Share of Barbershop Revenue: Shaving
From Impossible Idea to Mass Production
Explosive Early Growth
The Nickerson Effect
King Gillette's idea was brilliant but unmanufacturable until MIT engineer William Nickerson created the machinery to mass-produce cheap, sharp, disposable blades. After a slow first year, Nickerson's perfected process in 1904 ignited the company's growth, proving that execution, not just vision, forges a revolution.
An Army of Customers
World War I was the ultimate catalyst. A U.S. government contract made Gillette the standard issue for millions of soldiers, creating a generation of loyal, locked-in customers overnight.
3.5 M
Razors Supplied
Became standard issue for the American Expeditionary Forces.
32 M
Blades Supplied
Ensured every soldier could maintain a clean shave for gas mask safety.
The Business Model Myth
Contrary to legend, the "razor-and-blades" model wasn't the initial plan. It was a brilliant defensive pivot executed in 1921 to preempt the expiration of Gillette's patents and lock in a mass market.
1903: The Premium Launch
Gillette launches as a luxury item, costing $5—about half a week's pay for an average worker. The strategy is to leverage patent protection to command a high price for a superior product.
1903
1921: The Existential Threat
Gillette's foundational patents are set to expire, threatening to flood the market with cheap competitors and erode its monopoly.
1921
Post-1921: The Masterful Pivot
Gillette introduces a "New Improved" razor at the premium $5 price point, while slashing the price of the original "Old Type" razor to just $1. This floods the market with cheap handles, acquiring millions of new customers who are now locked into buying Gillette's high-margin blades. The true razor-and-blades model is born.
>1921
The Disruptor Disrupted
A New Challenger Appears
For a century, Gillette's dominance seemed absolute. But the rise of e-commerce enabled a new wave of direct-to-consumer (DTC) brands like Dollar Shave Club to attack Gillette's high prices and retail friction, causing a dramatic drop in market share.
Gillette U.S. Market Share (%)
The Enduring Legacy
The model Gillette perfected became a blueprint for countless industries, creating ecosystems where a low-cost platform drives recurring, high-margin sales of consumables.
The Razor-and-Blades Playbook
THE RAZOR
Sell the durable platform at a low price (or loss) to maximize adoption.
THE BLADES
Generate high-margin profit from the dependent, recurring consumable.
🖨️
Printers
Ink Cartridges
☕
Coffee Makers
Coffee Pods
🎮
Game Consoles
Video Games
💧
Water Filters
Replacement Cartridges
