Less than a month ago, Dollar Shave Club launched with a bang. The company, a subscription service that ships razors to your door for a monthly low price, was an instant viral sensation. Their online video campaign spread rapidly through Facebook and Twitter.
Dollar Shave Club got two things right. They had a simple and compelling value proposition that just made sense. They slashed the cost of the every day razor for the every day person. Secondly, they captured the hearts of their prospects, producing a humorous video that poked fun at their competition. The result was wild success and I was one of many who signed up.
Unfortunately, Dollar Shave Club failed to plan for wild success. Yesterday I received an email that my first shipment had been delayed for well over a month. Luckily, their value proposition and the loyalty they build through an intense emotional campaign is probably strong enough to overcome the slight annoyance of having to frequent Target one more time to buy a month’s worth of overpriced razors from Gillette.
Entrepreneurs often fail to plan for wild success, and many businesses don’t have the luxury of overcoming these types of mistakes. Outrunning your supply line can provide a devastating blow to your reputation that you can never overcome. When developing contingency plans, don’t forget to plan for the extreme positive outcome, not just utter failure.