How Gillette Lost Its Pricing Power

Gillette dominated men's grooming for decades with premium pricing and relentless razor-blade innovation. But a wave of direct-to-consumer startups — led by Dollar Shave Club and Harry's — shattered its model, turning a high-margin fortress into a cautionary tale. In this episode of Pricing Power Podcast, Lucas and Luna unpack the economics of the 'razor-and-blades' strategy, why Gillette's pricing power eroded faster than anyone expected, and what the company's response says about the limits of brand loyalty when cost advantage shifts to challengers. Specific numbers include: Gillette's 70 percent market share peak, the 90 percent gross margin on blades, and the $1 billion writedown Procter & Gamble took in 2019. If you've ever wondered how a seemingly unassailable pricing strategy can crumble in a few years, this episode lays out the mechanics clearly. #Gillette #DollarShaveClub #Harrys #ProcterAndGamble #RazorAndBlades #PricingStrategy #BrandEquity #DirectToConsumer #MarketDisruption #PricingPower #Business #BusinessPodcast #FexingoBusiness #PricingPowerPodcast #ConsumerGoods #Disruption #SubscriptionModel #PricingLessons Keep every episode free: buymeacoffee.com/fexingo