Thursday, October 15, 2009

This Marketing Method Is Tried And True!

Sometimes when we look at the whole IM (Internet Marketing) scene, we tend to forget that while some things are quite new and innovative (the autoresponder), most of the techniques used today have been around for awhile.

Take the freebie for example. It's a mainstay in every IMers arsenal. It's all about building a list by giving away something of value, usually info, in exchange for the recipients name and email address. It works in practically EVERY niche, and it works well. Click here to find out how you can master this technique.

But here's the thing. This simple but effective piece of marketing magic has been around for over a century! Many credit King Camp Gillette as its creator and I've included a short biography of his in this edition to outline the fact that we can still learn from the people who have come before us in this incredible field of marketing.

So please read his story and hopefully it inspires you to greater things in your own ventures.

Regards,

Michael J. Harris
Editor
Pro eBiz Tips
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The Father Of Freebie Marketing

King Camp Gillette (January 5, 1855 – July 9, 1932) was an American busin

King Camp GilletteImage via Wikipedia

essman, popularly known as the inventor of the safety razor. While Gillette did improve the design of the safety razor (patent US775134), his true invention was an inexpensive, high profit-margin stamped steel disposable blade and a unique business model that later became known as freebie marketing. This beat out competitors and became the most popular razor of its time.

Born in Fond du Lac, Wisconsin and raised in Chicago, Illinois. King Camp Gillette's family was devastated by the Great Chicago Fire of 1871.

While working as a traveling salesman for the Crown Cork and Seal Company to support his family in the 1890s, Gillette would see bottle caps, with the cork seal he sold, thrown away after opening the bottle. This made him realize the value in basing a business on a disposable product. Gillette hit upon an idea. Earlier razor blades needed continuous sharpening, becoming worn out quickly and making them expensive. He realized that a profit could be made by selling a safety razor at a reduced price and then making a profit margin on the inexpensive disposable blades. He developed a blade made out of very thin sheet-steel. Once the blade became dull, it was discarded and replaced by a new one, using the same holder. This has been called the Razor and blades business model.

Safety razors had first been developed in the mid-1800s, but still used a forged blade. In the 1870s, the Kampfe Brothers introduced a type of razor along these lines. Gillette improved these earlier designs of the safety razor and also introduced his true innovation of high profit-margin stamped razor blade steel blades (along with his unique business model). Gillette began giving away his razors to sell more blades, which had a higher profit margin!

The most difficult part of the development was making the blades, as cheap thin steel was very difficult to work with and very difficult to sharpen. This accounts for the long delay between the initial idea and the first production.

To apply his idea, Gillette co-founded the American Safety Razor Company on September 28, 1901 (changing the company's name to Gillette Safety Razor Company in July 1902). Gillette obtained a trademark registration (0056921) for his portrait and signature on the packaging. Production began in 1903, when he sold a total of 51 razors and 168 blades. The following year, he sold 90,884 razors and 123,648 blades, thanks in part to Gillette's low prices, automated manufacturing techniques and good advertising. By 1908, the corporation had established manufacturing facilities in the United States, Canada, England, France and Germany. Razor sales reached 450,000 units and blade sales exceeded 70 million units in 1915. In 1918, when the U.S. entered World War I, the company provided all American soldiers with a field razor set, paid for by the government.

In his later life he traveled extensively, and was universally recognized from his picture on the packets of razor blades. People were surprised that he was a real person rather than just a marketing image. A Gillette company history stated that in non-English speaking countries people would often ask for "the kind with the Man's Face" blades.

Some peers in the marketing industry quote him as one of the innovators who revolutionized the Freebie marketing ideas. The Gillette Company continued to thrive and sells products under a variety of brand names including Gillette, Braun, Oral-B, and Duracell until 2005, when the company was sold to Procter & Gamble for $57 billion USD. It is now known as Global Gillette, a business unit of Procter & Gamble.

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