Advice Line with Michael Dubin of Dollar Shave Club
Timestamps are as accurate as they can be but may be slightly off. We encourage you to listen to the full context.
Podcast Summary
In this episode of the How I Built This Advice Line, host Guy Raz teams up with Michael Dubin, founder of Dollar Shave Club, to provide strategic guidance to three entrepreneurs facing scaling challenges. (03:45)
The episode features three distinct businesses seeking advice: Benita Kasbo's Middle Eastern heritage food brand launching Syrian cheese, Brandon Davis's mobile mini golf company PARS, and Bria Fleming's custom wildland firefighter uniform business. Each caller presents unique challenges around marketing strategy, maintaining service quality during growth, and scaling production respectively.
- Core themes include grassroots marketing strategies for niche products, building company culture that prioritizes customer experience, and navigating the transition from solopreneur to scaled business operations
Speakers
Guy Raz
Guy Raz is the host of How I Built This, one of the most popular business podcasts in the world. He's also the creator and host of several other successful NPR shows and has interviewed hundreds of entrepreneurs about their journey to building iconic companies.
Michael Dubin
Michael Dubin is the founder of Dollar Shave Club, which he built from a viral video and warehouse full of razors into a billion-dollar company acquired by Unilever in 2016. He spent ten years with the company, half as an independent startup and half under Unilever ownership. After leaving, he became an investor and advisor to companies like Liquid Death, while also founding Safe Woods, a wildfire nonprofit focused on forest management and fuel mitigation work. (05:35)
Key Takeaways
Breaking Through Market Noise Requires Authentic Originality
Michael Dubin explains how the marketing landscape has dramatically changed since Dollar Shave Club's viral success in 2012. (06:56) While cutting through the noise is still possible, the viral wave doesn't last as long due to the exponential growth of content and influencers. Success requires something "truly original" that "feels authentic and strikes a chord" whether emotional or humorous. The key difference now is that entrepreneurs must work much harder to sustain momentum beyond the initial breakthrough moment.
Customer Education is Critical for New Product Categories
When introducing unfamiliar products like Syrian cheese, entrepreneurs must lower the barrier to entry for consumers. (16:36) Dubin emphasizes making it "really easy for them to put it on something they're already doing" rather than requiring customers to completely reinvent their habits. This includes providing clear usage instructions, recipe cards, and positioning the product as an enhancement to existing behaviors rather than a replacement.
Hire for Attitude in Service-Based Businesses
For businesses in hospitality and customer experience, attitude trumps skill when hiring. (33:42) As Raz notes, "you're not looking for necessarily people with specialized skills. The most important thing you're looking for is somebody with the right attitude." You can teach people processes and procedures, but finding individuals who genuinely love bringing joy to others and believe in the mission creates the foundation for exceptional service delivery.
Create Equity Participation to Drive Employee Investment
To get employees to care as much as founders do, Dubin suggests creating equity pools that allow key team members to participate in company success. (30:28) This gives employees "the pride of ownership" beyond salary compensation. For businesses not ready for equity sharing, investing in employee development and clearly articulating career growth paths helps create engagement and loyalty even in temporary roles.
Focus on Scalable Products When Resources are Limited
When facing production bottlenecks and margin constraints, entrepreneurs should identify which products or services offer the highest scalability and profit margins. (49:52) For Bria's firefighter uniform business, Dubin suggested focusing on accessories with better margins rather than complex custom uniforms that require extensive labor. This strategy allows businesses to generate cash flow while building systems for more complex offerings.
Statistics & Facts
- Dollar Shave Club was acquired by Unilever for reportedly $1 billion in 2016, just five years after its founding. (05:04)
- The wildland firefighting industry is approximately 87% male, leaving only 13% female firefighters in this specialized field. (55:06)
- PARS Mobile Mini Golf is projected to hit over $200,000 in revenue this year, growing from a business that started in their carport. (29:16)
