HOW THEY MAKE MONEY // SEASON 1, EPISODE 53 INTELLIGENCE REPORT
Gillette (P&G) 3/14 ACTIVE GATES

What does Gillette Really Sell?

On the outside, it is easy to assume that Gillette makes money by selling premium razor handles and grooming tools in retail stores. That is what is SEEN.

THE SEEN ENGINE
$8.00B+

Retail Grooming Hardware & Shaving Sales

The visible retail sales of razor handles, trimmers, disposable razors, and shaving gels across global retail stores.

Source: Procter & Gamble Grooming Segment Annual Report
THE UNSEEN ENGINE
70%+

Proprietary Replacement Blade Cartridge Margins

The non-negotiable consumable replacement blade refill packages operating at multi-hundred percent markups over raw manufacturing costs.

Source: P&G Financial Segment Disclosures / Harvard Business School Case Studies

The real wealth is in what is NOT SEEN — how they use the razor handle as a low-margin delivery vehicle to lock consumers into a lifetime consumable repurchase cycle of high-margin replacement blade cartridges, protected by dense patent thickets.

But which money gates does Gillette use to stack this cashflow? Click each ? to reveal how they use that gate.

AGENT // PROFIT OPENER THE SEEN (PHYSICAL/DIGITAL) THE UNSEEN (PHYSICAL/DIGITAL)
1. Products
ACTIVE · SEEN Razor Handle Retail Hardware Sales Retailing low-margin razor handles and starter kits to get physical hardware into the hands of consumers. Source: P&G Grooming Division
—
2. Services — —
3. Access —
4. Attention — —
5. Money — —
6. Risk — —
7. Brand —
STEP 03

Strategic Translation

The underlying economic infrastructure driving this profit extraction design.

01

What is the explicit promise the customer buys?

Sleek, ergonomic razor handles displayed on retail store shelves and featured in high-budget TV sports commercials.

02

What asset is quietly accumulating as a result?

Millions of men and women who own a proprietary Gillette razor handle in their bathroom.

STEP 04

Author's Note

PO
Pelumi Ogunmokun FOUNDER // KAMPAIGN LABS

The Personal Take: Do not try to make all your profit on the initial transaction. Sell the primary product vehicle at cost to seed the market, then engineer a proprietary consumable component or service access gate that the customer MUST re-purchase repeatedly to keep using the primary product.

SME Operational Conditions: Apply this when your physical or digital product requires ongoing maintenance, refill supplies, or recurring component replacements.

Local Brand Example: A commercial water filtration installer sells and installs high-end under-sink water filters at zero profit ($150 total cost). However, the system uses a proprietary twist-lock filter cartridge that can only be purchased from the installer. Every homeowner MUST replace the $45 filter cartridge every 6 months. The installer turns a one-off $150 installation into $90/year of pure, recurring high-margin income for 10+ years per household.

Read Next: The 7 Money Gates →
📖 VIEW THE 14 PROFIT OPENERS FRAMEWORK GUIDE ▼
THE FRAMEWORK // FOR REFERENCE

The 14 Profit Openers Explained

Every business extracts revenue through some combination of these 14 channels — 7 openers, each available in a Physical and a Digital medium. Use this as your reading guide.

PROFIT OPENER PHYSICAL CHANNEL DIGITAL CHANNEL
01 Products Physical Product Sales Tangible goods manufactured, packaged, and sold via retail or direct channels. The classic storefront transaction. Digital Product Sales Downloadable assets, software, templates, or digital files sold as a one-time purchase with zero delivery cost.
02 Services Physical Service Delivery In-person labor, consultations, repairs, or expertise delivered at a physical location or on-site. Digital Service Delivery Remote consulting, virtual coaching, online fulfillment, or any service rendered and delivered through digital channels.
03 Access Physical Access Gate Memberships, entry passes, physical loyalty tiers, or location-based access privileges privileges sold on a recurring basis. Digital Access Gate Subscription plans, SaaS tiers, paywalls, or recurring digital membership fees that gate content or functionality.
04 Attention Physical Attention Capture Billboard placements, event sponsorships, in-store brand shelving, or any physical advertising inventory sold to third parties. Digital Attention Capture Ad revenue, sponsored placements, affiliate arbitrage, or monetizing an owned audience's attention through digital channels.
05 Money Physical Money Mechanics Upfront payment collection, deposit structures, or float optimization — holding cash from physical transactions before fulfillment. Digital Money Mechanics Payment processing spreads, digital float, BNPL integrations, or fintech revenue extracted from digital transaction flow.
06 Risk Physical Risk Coverage Extended warranties, in-store protection plans, insurance products, or physical asset guarantees sold alongside the core product. Digital Risk Coverage Digital warranties, SLA upsells, cybersecurity add-ons, or data backup subscriptions that monetize a customer's fear of loss.
07 Brand Physical Brand Licensing Trademark royalties, franchise licensing fees, co-branding deals, or physical branded merchandise sold to third parties. Digital Brand Licensing IP licensing, white-label software deals, digital co-branding arrangements, or platform platform placement fees paid for brand association.