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

You know the Dollar Shave Club. Before they were acquired for $1B in 2016, they generated $240M/year in revenue.

How is it possible to generate this amount of revenue with just a $1-product?

1. $1-dollar shave - it's a compelling disruptive statement to attract attention.

2. When you went to their site you could see 3 options to choose from: $1/m, $6/m and $9/m.

3. Boom! 73% of their sales were coming from their $6 and $9 models.


Bonus:
How McDonalds makes profit of a $1-menu cheeseburger, if they spend $1.91 to get 1 customer?
They offer, additionally, the fries and soda at a $1.14 margin.
In the end, 86% of the profit is made from the fries and soda.

Source: jacobmcmillen.com


Cheers,
Charlie Patel ;)



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