Proof at last!

I've said for years that the prices charged for razor blades or cartridges are ridiculously inflated, out of all proportion to the costs involved. Now, an article in the Daily Mail provides the evidence I've long been seeking, and confirms all I've said.

Men are paying over the odds for a clean shave because of a huge mark-up on razor heads.

The products sold by Gillette and other companies cost as little as 5p [US 8c] to make, industry insiders have revealed.

But consumers are charged up to £2.43 [US $3.88] a piece - a mark-up of more than 4,750 per cent.

The price of shaving products at leading supermarkets is under investigation by the Office of Fair Trading.

The Government watchdog is involved in a long-running inquiry into alleged collusion between manufacturers and retailers.

It is alleged that salesmen from Procter & Gamble, which bought Gillette for $57 billion (£35 billion) in 2005, urged retailers not to cut the shop price of its brands.

A check of Tesco, Asda and Sainsbury's found the UK's three biggest supermarkets are selling Gillette's Fusion Power cartridges at the same price.

A pack of eight costs £18.53 [US $29.58], and the replacement razor heads are so expensive that they are now the most shoplifted product in the High Street.

Special security measures have been introduced, including sealing the packs in boxes with an electronic tag which sets off an alarm if it is not removed before leaving the store, and CCTV that activates if the product is removed from the shelf.

A pack of four Fusion Power cartridges costs only 20p [US 32c] to manufacture, plus 8p [US 13c] for packaging. But they are sold for £9.72 - £9.44 [US $15.52 - $15.07].

An industry insider said Gillette takes the lion share - £6.28 [US $10.02] - to cover its operating costs and make a profit.

. . .

The insider said: 'I know as a matter of fact that it will not cost more than 5p to produce a refill cartridge, it is a question of pennies given the bulk involved, yet Gillette is charging a wholesale price which is much higher.

'The figures tell you why it can afford to use stars such as Tiger Woods on its payroll (for advertising) and how it could afford to give David Beckham a diamond-encrusted mach3 razor for Father's Day some years back costing $54,000.

'With the Gillette products, the company is so dominant that it is able to spell out the terms of sale, including the price they want to see, to retailers.'

There's more at the link.

Admittedly, US retail prices seem a bit lower than UK consumers are paying. At the time of writing, an 8-pack of Gillette M3 Power cartridges (shown below) sells at Wal-Mart for $23.47.




However, that's still a heck of a mark-up in Gillette's favor!

Several years ago, I decided I'd had enough of being ripped off like this. I did a bit of research, and found that a basic electric razor would cost me anywhere from $25 to $35. For example, the Philips Norelco model 6940 (shown below) retails at Wal-Mart for $31.88 at the time of writing.




I figured that such a razor would give me two to three years of reliable shaving before its heads needed replacing. In practice, I don't replace them, because a set of replacement heads costs more than a new razor! I simply buy a new unit.

Experience has proved me correct. I'm now on my third such razor. I get two-and-a-half years useful life out of each. That makes my cost per month (averaging the cost of the razor over the time I use it) about $1.60 - or about a quarter of what it would cost me to use two Gillette M3 Power cartridges per month (they used to last me about two weeks each).

(Oh - in case you're wondering, I've used Wal-Mart products and prices solely as an example, and because they tend to be the cheapest, in my experience. I'm not paid by them, I'm not promoting Wal-Mart, and I'll gladly use equally low-priced examples from another store, if it makes anyone feel more comfortable.)

How about it, guys? How do you get around such outrageous price-gouging?

Peter