Dollar Shave Club launched on a viral video, built a consumables subscription with more than 3 million members, and sold to Unilever for $1 billion in cash in 2016. On 26 October 2023 Unilever sold a 65% stake to Nexus Capital Management, keeping 35%, without disclosing terms. Marketing got DSC launched, but a razor subscription is easy to copy, so it lacked a second moat.
Key takeaways
- Unilever paid $1 billion in cash in 2016, when DSC had more than 3 million members and $152 million of 2015 turnover.
- In October 2023 Unilever sold 65% to Nexus Capital Management, keeping 35%. Terms weren't disclosed.
- By then DSC also sold through Walmart and Target, not only by subscription.
- Marketing supremacy gets you launched. A consumables subscription without a second moat gets competed down.
Michael Dubin had just lost his job. He'd moved to Los Angeles with a vague idea about comedy and no experience to back it up. He'd never even done an open mic night.
Then a friend sent him a message: "Hey Michael, I have a warehouse filled with 250,000 razors from South Korea. Any ideas on how to sell them?"
He had one. A subscription that mailed blades every month, at a fair price. And he had a camera.
The most famous video he made has someone off-camera asking if the blades are any good. His answer: "No! They're f***ing great!" It went viral. The 250,000 razors sold out in a day. A few years later Unilever paid $1 billion for the business.
That's how I told the story in Chapter 10 of The Subscription Playbook. Here's what happened next, and it's the more useful half.
The numbers
| When | What happened | Source |
|---|---|---|
| Launch | Viral video sells the 250,000 razors in stock in one day | The Subscription Playbook |
| 2015 | $152 million turnover; more than 3 million members; $153 million raised over three rounds | Multiples.vc (secondary) |
| 2016 | Unilever buys DSC for $1 billion in cash | BeautyMatter |
| By 2023 | DSC also sold through retailers including Walmart and Target | Digital Commerce 360 |
| 26 Oct 2023 | Unilever sells a 65% stake to Nexus Capital Management, keeps 35%; terms undisclosed | Unilever; Digital Commerce 360 |
A quick sum on the 2016 deal: $1 billion ÷ $152 million of 2015 turnover is about 6.6 times revenue. For a razor company, that's a subscription-business multiple, not a consumer-goods one.
What did Dollar Shave Club do right?
Almost everything about the launch.
- A clear villain. Overpriced razors locked behind a plastic case, and the wait for someone with the key.
- A simple offer. Good blades, delivered monthly, for a few dollars.
- A founder with a hidden talent. Dubin had some comedy ability and a little experience making marketing videos. He combined them.
- A consumables model. Razors run out. People need more. A subscription removes a dull errand.
In the MOATS framework, that's M for Marketing supremacy at its best. DSC got millions of customers at a tiny acquisition cost because people shared the video for free.
So why did Unilever sell?
Unilever didn't disclose the price, so I can't tell you what DSC was worth in 2023. And I won't guess.
But look at the signals. After seven years of ownership, Unilever sold a majority stake and described the move as refocusing on "core strategic growth areas." By then DSC was also on shelves at Walmart and Target, competing for space next to the brands it once mocked.
That suggests DSC hadn't become the growth engine Unilever paid $1 billion for.
The reason is the one I warned about in Chapter 1 with my dog biscuit example. "Just because you start selling dog biscuits on a subscription basis instead of ad-hoc doesn't mean I can't do the same thing." A razor subscription is the same. Find a blade supplier, build a site, launch a funny video. Plenty of rivals did.
The video built awareness. On its own, it didn't build a moat.
What I'd tell my younger self
My first business was a results-guaranteed marketing agency. It grew fast, but it had no real point of difference from its competitors, and I learned this lesson the hard way. Great marketing can fill a funnel fast. But if a competitor can copy your product in a month, all you've done is educate the market for them. Marketing is the first moat to build, never the last.
Is marketing your only moat?
Score your business on all five MOATS factors in a few minutes with the free MOATS Scorecard, and find the second moat you need to build.
What the book said in 2022
I told the launch story and drew a marketing lesson: use the talent "bubbling away under the surface." Dubin's comedy, plus a product people wanted and a more convenient way to buy it, gave him "a winner."
One correction. I wrote that Dubin sold "in 2019." The Unilever deal was 2016, for $1 billion in cash.
And I'd add something I didn't say strongly enough then. In the MOATS framework, DSC scored brilliantly on Marketing and Audience, and weakly on Toughness and Switching. There was nothing to stop a customer leaving for a cheaper blade.
What's happened since
On 26 October 2023, Unilever announced it was selling Dollar Shave Club to Nexus Capital Management. Nexus took 65%; Unilever kept 35%.
The subscription that started as a rebellion against supermarket razors now sits in supermarkets too. That's not failure. Retail is a sensible way to reach people who'll never subscribe. But it shows how the moat had narrowed: DSC needed more than one channel to keep growing.
Compare it with how Who Gives A Crap took its toilet-paper subscription into the supermarket, a consumables brand that built a cause and a look into its moat from day one.
What you can steal from Dollar Shave Club
- Use the launch-video playbook. Humor, a clear villain and a simple offer still work in 2026, on TikTok and Reels as much as YouTube. My video sales letter script template gives you the structure.
- Then build the second moat, fast. Own-brand formulations, personalization, a bundle (razor plus shave cream plus aftercare), or a loyalty club. Anything a copycat can't set up in a weekend.
- Don't rely on one channel. DSC ended up in Walmart and Target. Plan wholesale and retail alongside your subscription instead of treating them as betrayal.
- Know what drives your multiple. Buyers pay subscription multiples for predictable, defensible revenue. If your revenue is easy to copy, expect a lower price when you sell. See recurring revenue multiples.
- Score yourself honestly. If you're strong on Marketing and weak on everything else, you know where to spend the next year.
Steal this: the copycat test
Write down exactly what a competitor would need to copy your business in 30 days. If the list is "a supplier, a website and some ads," your moat is marketing alone. Pick one item from step 2 above and start on it this quarter.
Free Subscription Profit Review
Australian business owners can book a free 30-minute review with a BPAG Accountants adviser. An honest conversation about:
- whether a subscription model could work for your business
- how recurring revenue could cover your fixed costs each month
- how it could lift what your business is worth
No cost, no obligation. General information only until we understand your situation.
Your next step
Run the MOATS Scorecard on your business today. If Marketing is your highest score by a distance, you're where DSC was: launched, growing and exposed.
Then browse competitive moat examples for ideas on the second moat that suits a consumables business.
Frequently asked questions
How much did Unilever pay for Dollar Shave Club?
Unilever paid $1 billion in cash in 2016. At the time, Dollar Shave Club had more than 3 million members, $152 million of turnover in 2015 and had raised $153 million across three funding rounds, according to secondary deal profiles. That's about 6.6 times its 2015 turnover.
Who owns Dollar Shave Club now?
Since October 2023, private-equity firm Nexus Capital Management has owned a 65% stake, with Unilever keeping 35%. Unilever announced the sale on 26 October 2023 and described it as refocusing on 'core strategic growth areas.' The price was not disclosed.
What made the Dollar Shave Club video work?
It had three ingredients: humor that felt genuine, a clear villain (overpriced razors locked behind store counters) and a simple offer. Michael Dubin wrote and starred in it himself. The video went viral and the launch sold the 250,000 razors his friend had in stock in a single day.
Is a razor subscription still a good business?
It can be profitable, but it's crowded and easy to copy. Anyone can source blades and set up a subscription site. To last, you need something rivals can't match quickly: an own-brand formulation, personalization, a bundle, a loyal community, or distribution in stores as well as online.
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Robert Coorey, MBA
Robert is the author of The Subscription Playbook and Feed a Starving Crowd and a Director at BPAG Accountants in Sydney. More about Robert.
Sources
- Unilever, Unilever announces the sale of Dollar Shave Club (26 Oct 2023)
- Digital Commerce 360, Unilever is selling Dollar Shave Club after seven years (30 Oct 2023)
- BeautyMatter, Nexus Capital Management to buy Dollar Shave Club (Oct 2023)
- Multiples.vc, Dollar Shave Club acquisition profile (secondary)
- Retail Touchpoints, Unilever sells Dollar Shave Club as it refocuses (Oct 2023)
Facts and prices checked 27 October 2026. Spotted something out of date? Tell us.