"____" Of The Month Clubs - A New Trend in Startups

When a great idea and a disruptive business model comes along, copycats are sure to follow. Such is the case for one of the better startups to come along this year:

Dollar Shave Club

For those that don't recall, Dollar Shave Club is a new company that offers to send a monthly supply of razors to your doorstep at a fraction of the price that you'd have to spend buying new blades at your local convenience store. In essence, it acts as a Netflix for razors and is highly disruptive to the traditional razor blade market.

It also has a legitimately great marketing video, a fun website, and copy that actually makes you laugh.

It wasn't long until it spawned copy cats. And while these new startups aren't necessarily hawking razors, they are trying to get men to sign up for monthly deliveries. Let's take a look at a couple and see how they stack up when compared to DSC.

Before I delve into the copy cats, I want to remind everyone that these sorts of subscription services are by no means a new thing. So-called "___" of the Month Clubs have existed for a long time. Typically, they'd come in handy when someone didn't know what to get their mom or dad for their birthday. So, they'd sign them up for a Cheese of the Month Club membership, or a Beer of the Month Club, or Coffee, or Tea, or...you get the point.

Dollar Shave Club was, as I can tell, the first to take this concept and use it to truly disrupt a marketplace.

Two startups have recently emerged trying to capture the newly revitalized "_____" of the month club market:

  • Manpacks
  • Urban Cargo

Now, if you need more refreshing on Dollar Shave Club, I recommend either checking out their website, or MailmanBitesDog's blog post about them from earlier this year.

Now, let's dive into the copy cats:

Manpacks: Manpacks offers "Manly Goods. On a Schedule." What does that actually entail? Well, apparently it means you can get new underwear, socks, condoms, and shaving supplies shipped to your doorstep every three months, with the ability to alter your custom "manpack" at any time.

The message of the founders is that they want to give their subscribers more free time to "slay dragons and achieve the goals you aspire to."

I've got to be honest here, reading through the copy on their website doesn't make me laugh, nor does it seem very original...it's like they they threw a bunch of geek-speak at a wall and hoped it would stick. It all seems very, very forced.

Further, how is this really a disruptive concept at all? Maybe I'm alone on this, but I don't find myself replacing my boxers and dress socks every three months. It's almost like they're trying to disrupt the washing machine market. And, frankly, I'm not sure I think it makes much sense. I don't even have to go to a store to buy these things, I can already do all of this online.

Manpacks, which is also something of an insulting name, sells third party products, as opposed to the proprietary products of DSC, and seems less intent on disrupting a market or solving a real problem as it does on trying to solve invented problems and cash in man's perceived and exaggerated laziness. And again, laziness which I can already get around by buying things online. Plus, by not selling proprietary products, they aren't able to disrupt a market in terms of product cost a la DSC, and that means low margins unless they do massive volume.

Lastly, looking at the About page on the website, it's like the founders played a game of "startup lingo mad libs" for everything on there. From the copy to their titles ("Custom Experience Officer), it just seems to be trying so hard. Perhaps I'm being a bit too harsh, but I just don't see the point of this.

Urban Cargo: Urban Cargo offers a unique take on the "____" of the Month Club concept. Per the website:

For $14.95 per month (Free Shipping), you will receive personalized men's skin care, hair care, or shaving products from award winning brands based on your grooming profile. We analyze your skin type, hair type, shaving regimen, among other attributes to make the best product selections. Everything is tailored to you so you'll only get what is best for you.

Now, I'm definitely not the type of guy who would sign up for this sort of thing. And in some sense, I find myself opposed to it on the grounds that it furthers the feminization of man. But, I actually do think there is a legitimate market for this.

Rather than following in Manpacks' trail of having subscribers pick the exact products they want to receive, Urban Cargo curates its packages to the subscriber's specific needs. It tailors what you get based on skin tone, hair type (from bald --> flowing locks), facial hair preference, etc. It also lets subscribers rate the items received in each package to help the Company send a better curated package the following month.

Its like a personal consultation at Sephora...only its for men and doesn't require the embarrassment of actually doing this in a public place.

Its products are also third party, so they too lack the proprietary nature of DSC. Though, it'd obviously be a bit tougher for a startup to market a subscription product for an unknown brand of facial cremes and hair gels, so it's tough to knock them for that. If anything, it just means they make smaller margins.

Now, the copy on the website is still a little painful, but I'm probably also a bit of a curmudgeon when it comes to this stuff. It certainly doesn't feel as forced as Manpacks. That said, it doesn't detract from an interesting concept that actually does seem to have legs.

_______________________________________________

Now, I'm sure that there are more "_____" of the Month Clubs out there that provide a new take on what DSC has done, and I'm sure that others are in the works. These are just two big and recent examples of them that target a similar end-market - namely, Men.

What does everyone think? Would anyone here sign up for any of these companies' services? Am I being too hard on Manpacks and too lenient on the others? Does anyone have any crazy ideas for an untapped "___" of the Month Club market? Let me know in the comments.

 
Best Response
freeloader:
Total props to DSC. Absolutely worth it.

Of the Month clubs are definitely getting a bit old. It's already extended to NSFW products, e.g. BoinkBox. There's even a startup that helps you set up your own "of the month club" - definitely an oversold indicator if I ever saw one...

Yeah, I've heard about the one that lets you set up your own "of the month club." Completely ludicrous. People think you can throw anything in a box and sell a subscription for it. I hadn't heard about BoinkBox, but I honestly can't see who would sign up for that.

Another company that does a different take on this is Trunk Club, which was started by one of the Bonobos founders who left to start it. It's essentially "curated" clothing for men that gets shipped to you once a month depending on your preferences. You keep what you want and send back what you don't want. You only pay for what you keep. Sounds like an insanely difficult business model that's absolutely ripe for people to cheat.

 

Hey TheKing,

Saw some traffic coming from this article and wanted to respond with a few points.

Subscription commerce is hot right now. A big part of that is due to the success of Dollar Shave Club's viral video which went nova last Spring. This sort of 'overnight success' does tend to bring out copy cats and increased attention to businesses—both new and old—in the sector.

We like DSC and other businesses in the SubCom space. There is a lot of room for subscription commerce services and there are plenty of products that lend themselves to this model. Competition is ultimately better for business and consumers: it exposes more customers to SubCom, increases customer comfort with a new sales model, and everybody works harder so customers win while weaker 'me-too' plays are weeded out.

I can say these things because Manpacks is an old hand in this business, not a Johnny-Come-Lately copycat as you state in your post.

Manpacks was founded Jan 2010 and we were bootstrapping for a year before DollarShaveClub ponied up for their domain in Jan 2011. By the time Dollar Shave Club "re-launched" in March 2012 with the viral video, Manpacks had been in business for over 2 years and already had thousands of customers using our subscription service.

None of this is obscure information: a quick Google search would have turned up a wealth of information about our history.

Manpacks is a service for guys carrying some of the best men's clothing and grooming products on the market—a subscription distributor for products from a variety of top brands. We offer fully customizable packs on a flexible schedule and pride ourselves on taking great care of our customers.

DollarShaveClub has a different value proposition, a narrower product range, a product made in Korea by a company called Dorco, and great marketing. They had a huge launch and are kicking ass and we certainly admire how quickly they've made a name for themselves, but being a 'cool company' does not qualify as being 'disruptive' or 'innovative', and certainly does not mean 'first'.

A little research would have revealed who was an established player and who showed up later. Or you could have asked us: we're easy to reach on Twitter (@manpacks), Facebook (/manpacks) or of course, at Manpacks.com.

Ken Johnson Co-founder, Manpacks.com

 
kenjonson:
Hey TheKing,

Saw some traffic coming from this article and wanted to respond with a few points.

Subscription commerce is hot right now. A big part of that is due to the success of Dollar Shave Club's viral video which went nova last Spring. This sort of 'overnight success' does tend to bring out copy cats and increased attention to businesses—both new and old—in the sector.

We like DSC and other businesses in the SubCom space. There is a lot of room for subscription commerce services and there are plenty of products that lend themselves to this model. Competition is ultimately better for business and consumers: it exposes more customers to SubCom, increases customer comfort with a new sales model, and everybody works harder so customers win while weaker 'me-too' plays are weeded out.

I can say these things because Manpacks is an old hand in this business, not a Johnny-Come-Lately copycat as you state in your post.

Manpacks was founded Jan 2010 and we were bootstrapping for a year before DollarShaveClub ponied up for their domain in Jan 2011. By the time Dollar Shave Club "re-launched" in March 2012 with the viral video, Manpacks had been in business for over 2 years and already had thousands of customers using our subscription service.

None of this is obscure information: a quick Google search would have turned up a wealth of information about our history.

Manpacks is a service for guys carrying some of the best men's clothing and grooming products on the market—a subscription distributor for products from a variety of top brands. We offer fully customizable packs on a flexible schedule and pride ourselves on taking great care of our customers.

DollarShaveClub has a different value proposition, a narrower product range, a product made in Korea by a company called Dorco, and great marketing. They had a huge launch and are kicking ass and we certainly admire how quickly they've made a name for themselves, but being a 'cool company' does not qualify as being 'disruptive' or 'innovative', and certainly does not mean 'first'.

A little research would have revealed who was an established player and who showed up later. Or you could have asked us: we're easy to reach on Twitter (@manpacks), Facebook (/manpacks) or of course, at Manpacks.com.

Ken Johnson Co-founder, Manpacks.com

I'd still argue that DSC is innovative whether or not they own the manufacturing of their product because most consumers aren't going to seek out the actual manufacturer or a product and buy in bulk direct. Most people will simply go to their local CVS or Duane Reade and buy new Fusion / Mach III blades when they need them. To say that they aren't disruptive because they don't own their own manufacturing seems a little silly, in my opinion. Yes, in large part their big splash is attributable to their funny web video, but they still offer a unique service to a world of consumers who aren't browsing Ali Baba for their next batch of razor blades.

You have a fair point that you've been around longer, but I still stand by my arguments vis-a-vis the value proposition being offered by Manpacks vs. DSC vs. Urban Cargo. Perhaps I've underestimated the laziness of man.

With that said, I hope you take no ill-will, but rather enjoy the extra traffic you've received!

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