Part three · Chapter 14

TRIALS AND THE ONE-DOLLAR DOOR

A trial lowers the price of finding out. It also selects the people who like to try things. Build the path from the trial to the full price before you launch it.

In 2012 a company called Dollar Shave Club launched with a video and an offer that was mostly its name: razor blades delivered for a dollar a month, plus shipping. Four years later Unilever bought it for about $1 billion in cash.

Why the dollar worked

The dollar wasn’t a discount on a razor. It was the price of a club, and the offer’s five decisions (chapter 2) all pointed the same way:

It fits chapter 4’s split. The buyer’s uncertainty wasn’t about the product; everyone knows what a razor does. It was about whether this was a better deal than the drugstore. A low price answered exactly that question, which is Anderson and Simester’s catalog, not Lewis’s newspaper.

And what came after

In 2023 Unilever sold a majority of Dollar Shave Club to Nexus Capital Management and kept a 35% stake, as Retail Dive reported. By then the brand was also sold through Walmart and Target, well beyond the subscription it launched with. A subscription door gets a customer in; it doesn’t guarantee that every future customer wants to come in that way.

Four kinds of trial

TrialAnswersSelects forNext step to build
Sample or small size, paid“Will I like it?”People curious enough to pay a littleA credit for the sample’s price toward the full size
Free plus shipping“Is it worth trying at all?”Collectors of free thingsA reason to pay for the second order, set up in the first box
Low first month of a subscription“Is this a better deal?”Deal-sensitive buyers in known categoriesA second-month price that isn’t a shock
Try at home, pay later“How will it look on me?”Serious buyers with a fit problemThe purchase itself; retire when stores or tools answer the fit

Every trial selects someone. Decide who before you pick the trial.

The trial-to-full-price cliff

The most common failure is the second invoice. A customer who joined at a dollar meets the real price in month two, and a large share leave. That cliff is the first offer’s fault, not the retention team’s. Two ways to soften it:

Anything that renews automatically falls under auto-renewal and negative-option laws that differ by state and change often. Show the renewal terms clearly next to the price, make cancelling easy, and have counsel read the checkout before launch.

Do this

This is one chapter of The First Offer, which is free and readable in full on a single page with no form in front of it.