Tweet

On The Cutting Edge: Gillette Gets An Idea For A Business

Article Overview: In 1895, Gillette decided it was time to return home. Moving back to Fond du Lac in Wisconsin, he took up work as a salesman for the Crown Cork & Seal Co. The company’s founder, William Painter, had invented the cork-lined bottle cap and turned it into a profitable business. Still, at 40 years old, Gillette wanted some of that success for himself.

On The Cutting Edge: Gillette Gets An Idea For A Business

In 1895, Gillette decided it was time to return home. Moving back to Fond du Lac in Wisconsin, he took up work as a salesman for the Crown Cork & Seal Co. The company’s founder, William Painter, had invented the cork-lined bottle cap and turned it into a profitable business. Still, at 40 years old, Gillette wanted some of that success for himself.

Painter could sense Gillette’s disappointment, and he understood his hunger for invention. One day, he decided to approach Gillette and offer him some valuable advice. “Why don’t you try to think of something like the Crown Cork, which when once used is thrown away, and the customer keeps coming back for more?” The idea stuck in Gillette’s head, but still his mind ran blank. “It is easy to give that kind of advice,” he said, “but how many things are like corks, pins, and needles?”

Gillette could not get Painter’s advice out of his mind for days after. “I applied the thought to every material need, but nothing came of it,” he said. That all changed, however, on one spring morning in 1895.

As he was getting ready to go to work that day, Gillette became frustrated with his razor. Its blades were dull – so much so that the razor was practically unworkable. As he tried to sharpen it, Gillette realized that it was so worn out it could not be used again. Suddenly, as his irritation with the razor grew, a light bulb went off in Gillette’s head.

What about a razor that would not need sharpening to work? What about disposable razor blades that could be thrown away when they were dull? What about a razor that was safe and did not cause nicks and cuts? Gillette rushed back to his room and penned a quick note to his wife. “I’ve got it,” it read. “Our fortune is made.”

Success did not come as easily as Gillette had imagined it would. Time after time, his idea was turned down for its impractical nature. That is, until William Nickerson came along. Nickerson was a chemist who agreed to try and help Gillette manufacture his razor. With a $5,000 loan from investors, Nickerson set off to work. That same year, the Gillette Safety Razor Co. was formed.

The first Gillette razors were on the market by 1903, but not before the company was already $12,000 in debt. As a result, Gillette was forced to sell an investor much of his own stock in order to get some cash infusions; he was now a minority stakeholder in his own company. The first razors were priced at $5 each, with a pack of $20 blades costing $1. In that first year, only 51 razors and 168 blades were sold. But positive customer reviews were pouring in.

Meanwhile, Gillette was still working for Crown Cork and hating every minute of it. “I urged the razor company to make a salaried position for me,” said Gillette, “but those in control refused to meet my wishes, giving as a reason the need of every dollar for development of the business.”


Gillette resigned as president and set sail for London. But when he got wind of the company’s proposal to license its international rights for ongoing royalties, Gillette rushed back to the U.S. and tried to stop the move. Eventually, he succeeded and even won himself a salaried position.

By time Gillette was 55, his company dominated the razor industry. He had achieved his dreams of becoming a millionaire. The stock market crash of 1929, however, took most of that away from him. He was also removed from power by the board of his own company.

Until his death at the age of 77, despite his own financial losses, Gillette could sit back and watch proudly as the company he founded continued to blossom. A century later, it still sells five times as many razor blades as any other company.

Related Articles
  Lesson #1: The Experts Are Not Always Right
  On the Cutting Edge of Time - Part 1
  Lesson #2: Who Said Shaving And Sports Do Not Go Together?
  Lesson #5: Stay One Step Ahead By Anticipating Your Competition
  Lesson #4: Make The Most Of Potential Marketing Moments

Article Tags: crown cork, cutting edge, gillette



Related Forum Posts
Elevator Pitch in 10 Words - "Winning Business Design For Aspiring Entrepreneurs Based On Their Idea"
Magnetic Ads - Biz Idea - Attn Young Entrepreneurs looking for a Business Idea. This came to me while sitting in Traffic for about 1 hour while looking and laughing at ridiculous bumper stickers. Note: this idea is rough but will help get the idea-momentum going. Idea: Sell advertising on the back of cars in the form of reusable magnetic signs (about the length of 2 or 3 bumper stickers) Most people shouldn't have reservations to participating if they get a cut of the monthly fee you charge the company advertising and it doesn't hurt their car. An example of a Magnetic Ad: Geico: I saved 15% on my Car Insurance. Call 1-800-U-SAVE-15 You don't have to pay the cost associated with creating the Magnetic Ad because you will advise the company that this belongs to them and you can get them in touch with someone who created reusable magnets. So your basically managing two sides: 1. Company's that want to advertise 2. People in your neighborhood (to start) who will put the ads on their car. Bigger cars can have more than one ad. Happy Money Making!
My entry - 1. The Best Business Books Ever: The 100 Most Influential Business Books You'll Never Have Time to Read - this is a fascinating book about the history of Business theory, and I'd recommend it to anybody. 2. The Big Book of Small Business: You Don't Have to Run Your Business by the Seat of Your Pants, by Tom Gegax. Ditto. 3. PADI: The Business of Diving Book Okay, so this book won't be of use to anyone who doesn't want to start a scuba store, but I did, and this book was of course invaluable to me in reaching that goal.
Re: Magnetic Ads - Biz Idea - [quote="jvprosperity":32z4qe9w]Attn Young Entrepreneurs looking for a Business Idea. This came to me while sitting in Traffic for about 1 hour while looking and laughing at ridiculous bumper stickers. Note: this idea is rough but will help get the idea-momentum going. Idea: Sell advertising on the back of cars in the form of reusable magnetic signs (about the length of 2 or 3 bumper stickers) Most people shouldn't have reservations to participating if they get a cut of the monthly fee you charge the company advertising and it doesn't hurt their car. An example of a Magnetic Ad: Geico: I saved 15% on my Car Insurance. Call 1-800-U-SAVE-15 You don't have to pay the cost associated with creating the Magnetic Ad because you will advise the company that this belongs to them and you can get them in touch with someone who created reusable magnets. So your basically managing two sides: 1. Company's that want to advertise 2. People in your neighborhood (to start) who will put the ads on their car. Bigger cars can have more than one ad. Happy Money Making![/quote:32z4qe9w] What a brilliant idea. Please more info about the sticker and money involve.
Re: 15 Ways You Can Look Amazing on LinkedIn - Great Idea Trent, We can all help each other, regards, Mal.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

How Promotional Caps became a Fashion Trend

Coaching Tip: Identify Your Core Values

Severance and Separation Agreements

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.