Business, career & technology

Unilever has bought US start-up Dollar Shave Club

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rohan-chaneyHost

Expired
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The Dollar Shave Club offered an affordable product at an affordable price and was able to make a product. Companies like Univlever are cornering the market and becoming a monopoly, allowing them to charge whatever they want because they know there is no other alternative. Razors are much to expensive.
3 y
Host
Consumers will not like getting less quality at the same price, if indeed this happens. The marketplace of sellers is very competitive. Consumers will usually locate the best value: The highest quality products at the lowest prices. Therefore, if the quality of Dollar Shave Club products declines while the prices remain the same, consumers will not like paying more for less quality. In short, no it is not fair to get less quality at the same price.
3 y
Host
Ideally, abundant competition should drive prices down. Instead we have massive global companies controlling the majority of some markets. These kinds of monopolies are never good for the consumer, because companies with little or no competition can engage in price fixing. When all is said and done, prices tend to go up and quality tends to go down and the customer is the one who suffers the most.
3 y
Host
I think it's fair for the razor companies to charge whatever price they can get for their goods. However, the risk is that another U.S. start-up company could duplicate the business of Dollar Shave Club if the big companies set their prices too high. The product is easy to replicate.
3 y
Host
He wouldn't surprised if big companies snapped up more of these startups to broaden their brand portfolios and expand their reach in specific categories. But it doesn't mean they'll get a Dollar Shave Club-level premium."There are two things that drive multiples: the financial metrics and the story," he says.
3 y