How Razor Thefts Relate to Demand (original) (raw)

Gillette tells us that 20 years ago, it was selling more Mach3 razors than all competitors, combined.

The Mach3 was also popular among shoplifters.

Razor Thefts

According to the Boston Globe, during the early 2000s, the Mach3 was the “single most frequently stolen retail item in the United States and Europe.”

The reason relates to its weight and per pound value. Since a 3-pack of Gillette Venus disposable razors weighs just .14 pounds, you can easily stash a half pound of them under your shirt. Equally crucial (for the thief), that half pound could have a retail value of $25:

In addition, they are easy to resell. The Hustle says that we could find stolen razors and cartridges at neighborhood stores or flea markets or even bars.

Our Bottom Line: Razor and Blade Economics

Because they are about more than shaving, razors and their cartridges take us to demand. Defined as the quantities we are willing and able to buy at different prices, demand was one reason for the theft rate and also why we buy the cartridges.

As one purloiner told a researcher, he steals what people use. With razors, we could be replacing used cartridges after five to seven shaves (as the American Academy of Dermatologists recommends). Since many of us shave twice a week, we need 20 cartridges a year:

Then, we also can cite the razor-and-blade strategy. Associated with King Gillette (King was really his first name), it referred to cheap razors and expensive blades. When it works, you sell a relatively inexpensive product and then make money on its complements.

Because complements are determinants of demand, we have an increasingly affordable razor price boosting demand for its complements, razor blades and cartridges:

At the same time, though, complements can increase a shoplifter’s demand.

My sources and more: Thanks to my Hustle newsletter for inspiring today’s post and providing most of its facts. From there, this paper had more detail.

Several sentences from this post were previously published at econlife.