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Sairaj Kadam

Student & Financial ... • 1y

Do you think that LOW COST can generate HIGH RETURNS? Don’t believe this is possible? Well, it is. Take the example of Dollar Shave Club. They started with a simple idea, offering affordable razors through a subscription model, cutting out the middleman. With a quirky marketing campaign and a budget-conscious strategy, they scaled rapidly and were eventually bought for $1 billion. So, what should you consider when aiming for HIGH RETURNS with a LOW COST model? 1. Focus on Value, Not Price: You need to deliver something that feels valuable, even if it doesn’t cost much. This is what Dollar Shave Club did—offering convenience and a unique customer experience at a low cost. 2. Lean Operations: Keep your overhead as minimal as possible. Whether it’s outsourcing certain functions or using technology to automate, be smart with where you invest. 3. Effective Marketing: You don’t need a huge budget to create buzz. Dollar Shave Club used a viral video campaign that skyrocketed their growth. Creativity goes a long way. 4. Scalability: Ensure your business can grow without a significant increase in costs. Subscription models or digital products are great for this because they have low incremental costs as you expand. So yes, LOW COST can lead to HIGH RETURNS, but only if you’re smart about the value you provide, how you market, and how efficiently you run your operations.

8 Replies

Replies (8)

PRATHAM
•

Medial • 1y

w post brother 💯🙌

Inactive

AprameyaAI • 1y

yes IT CAN!

Anonymous 6

Hey I am on Medial • 1y

This seems possible but still I feel, many low-cost businesses struggle with quality and customer retention.

Anonymous 5

Hey I am on Medial • 1y

If low-cost can lead to high returns, then I’m definitely launching my new line of “affordable” luxury pet rocks, no assembly required lol

Anonymous 4

Hey I am on Medial • 1y

Absolutely, low-cost models can lead to high returns by focusing on delivering unique value and excellent customer experiences, just like Dollar Shave Club demonstrated.

Anonymous 3

Hey I am on Medial • 1y

Brands like Xiaomi—they offered smartphones at competitive prices by keeping margins thin and marketing smartly. It's all about figuring out where you can cut costs without sacrificing the core value that customers need.

Anonymous 2

Hey I am on Medial • 1y

Low cost = high return is possible, but only if you focus on value and brand. Dollar Shave Club was about convenience, attitude, and affordable pricing. The key is to make sure the customer feels they’re getting a lot more than what they’re paying for. Smart marketing, minimal overheads, and a scalable model worked for them.

Anonymous 1

Hey I am on Medial • 1y

Low cost can definitely lead to high returns, but it’s not as simple as just being cheap. It’s about being lean and efficient. Dollar Shave Club focused on value—making razors affordable but also making people feel like they were part of a club. You need to create a unique experience and operate smartly

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In 2010, Dollar Shave Club launched with a business model that seemed ridiculous on paper—sell razors online for a dollar a month. Who’s going to buy razors from the internet when they can just grab them from the store, right? Fast forward to 2016

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