ShaveMob Still ‘Playing The Long Game’ Following 800Razors Buy

Denver-based e-commerce startup will continue to let customer reviews and social-media buzz speak for the quality of its products and service model, which differs from other razors-by-mail programs by not locking customers into auto-renewal plans. CMO Justin Kutner discusses the 800Razors acquisition and ShaveMob’s “long game” approach.

ShaveMob’s acquisition of 800Razors in the dynamic razors-by-mail space expands the startup’s customer base and product lineup, but its game plan remains the same – highly focused on value, customer service and word-of-mouth marketing in the social-media channel.

Announced Aug. 30, the deal enables ShaveMob to absorb a close competitor that “invested millions of dollars in the development of its brand, creating strong relationships with customers and building a media footprint through partnerships with famous athletes,” according to the release.

Chief Marketing Officer Justin Kutner told the Rose Sheet Sept. 1 that 800Razors’ outreach activities “in the earlier days of razors by mail” did much to change consumer perceptions about the purchasing model and factored prominently in ShaveMob’s decision to acquire the company.

“We really appreciated the investment they made into educating the public about why razors by mail is such an excellent alternative to retail shopping for razors, in terms of price and getting the same exact quality, so for us the acquisition was a no-brainer,” he said.

Following the 800Razors acquisition, the combined entity will move forward with ShaveMob’s branding and razor platform, along with whichever of their shave creams is deemed customer-preferred and 800Razors’ Ultimate Shave line of lotion and soaps.

However, the Denver-based e-commerce startup has no plans to pick up where 800Razors left off with celebrity sponsorships and traditional media to promote the combined business. 800Razors’ humorous television spots can be viewed on YouTube, including one that the company says was banned.

Rather, ShaveMob will continue to focus on driving brand loyalty primarily via customer testimonials and social-media engagement.

“We really feel like what our customers have to say speaks for itself,” Kutner said. “We like to highlight that positive energy. With the acquisition we have a renewed focus on growing those testimonials and continuing our customer service outreach.”

Consumer and blogger reviews highlighted on ShaveMob’s website include:

“As a dad of 3 kids, I have to save money wherever possible. One of the biggest expenses I can possibly have is razor blades. My work requires me to look well-groomed, which means shaving. … I’ve been using ShaveMob and WOW! This is the best razor I have ever used”;

“It is fast and easy without standing in front of 24 feet of razors trying to figure out the best deal! I also like that there is no membership necessary or recurring fees at all!”; and

"I hate auto-shipments and binding contracts. I also can appreciate that they have excellent customer service that truly cares about customer concerns and issues. They firmly stand behind their products so you can rest assured that you can return their products if unsatisfied.”

Kutner characterized ShaveMob’s approach as playing the long game.

“It’s not like, ‘Hey, let’s get a burst of so-and-so athlete talking about how great our brand is, and then it kind of dies off.’ For us it’s a long play, we want people to keep coming back – not just for a few months when they see something on TV, but for years and years to come.”

ShaveMob’s model differs from others in the space by not relying on auto-renewal subscription plans, which enroll customers in membership programs with recurring fees. Its customers can make one-time orders – with free shipping – across a range of cartridge options and save up to 70% versus retail when buying in bulk.

For example, the company’s Baby Face three-blade razor for men can be had in a 24-cartridge package (a 12-month supply) for $24.99, while its most expensive men’s option, the six-blade Cave Man razor with trimmer, costs $39.99 for the handle and a year’s worth of replacement cartridges.

Two-month and six-month packages also are available. ShaveMob’s pricing framework for women’s razors and cartridges – in Practical, Purist and Perfectionist multi-blade variants – is similar.

The onus is on ShaveMob to drive repeat purchases, which it does through digital outreach and email prompts, allowing customers to modify their selections and reorder at will.

A ‘Standout’ Among Razor Clubs

Kutner said there are “a couple” of companies on ShaveMob’s radar that offer similar flexibility – Dorco USA appears to be one of them – but the startup sees itself as a standout compared with leaders in the online direct-to-consumer segment. At the top of that list is Dollar Shave Club, recently acquired by Unilever PLC in a billion-dollar deal (Also see "Unilever Mitigates E-Commerce Grooming Threat With Dollar Shave Club Buy" - HBW Insight, 20 Jul, 2016.).

Harry’s, Inc. is another notable player, as well as Procter & Gamble Co.’s Gillette brand, which has a razor club of its own.

Unlike services that lock consumers into auto-renewal plans (albeit with the promise that they can cancel at any time), ShaveMob is “not going to force a bunch of razors on you and make it difficult to un-subscribe, where you end up with this glut of razors that takes you forever to use and you’re paying out the nose for it every month and they’re always trying to upsell you with a ton of other ancillary products,” Kutner said.

He added that when it comes to pricing, ShaveMob “will go toe to toe with anybody.”

Following the 800Razors acquisition, the combined entity will move forward with ShaveMob’s branding and razor platform, along with whichever of their shave creams is deemed customer-preferred and 800Razors’ Ultimate Shave line of lotion and soaps.

Kutner is confident that the value-oriented, e-commerce razor market is the wave of the future rather than a flash in the pan.

“People have been complaining about how expensive and difficult razors are to buy from retail for a long time,” he noted. “They’re behind a locked case, you have to find somebody and it’s a whole hassle.”

He continued: “We really feel like we’ve upended that model by making it extremely simple – not to mention that you can have six months’ worth of razors for the price of, oftentimes, one month from a retail store. How could anybody go back to buying retail once they’ve experienced what it’s like to buy razors from ShaveMob?”