How One Company Transformed Beard Oil into Big Profits – and a Big Pay Day

What’s more valuable.. $10 sometime next month or $5 guaranteed on the first and third Monday of the month.

What do you think and by how much?

The $5 guaranteed …

Why? – Because it’s predictable and recurring…

How much more valuable? Well it can often be 3x as valuable as the same amount that isn’t recurring.

Now we often see recurring revenue in software companies, but they are not the only ones who can benefit.

Traditional businesses can benefit too.

Take, for instance, Gamal Codner, the founder of Fresh Heritage.

Initially, his men’s grooming line focused on beard oil for softening facial hair before shaving. Codner turned to Facebook ads to attract customers, but at $15 per customer, there wasn’t much room for margin with an average order value of $30.

Codner realized he needed to make a change. He expanded his product line and introduced the VIP Club—a subscription program that offered automatic shipments of Fresh Heritage products to its members.

After surveying 500 customers, Codner discovered they were less interested in discounts and more attracted to the idea of becoming alpha males in their respective fields.

A community of ambitious men.

The Perfect fit for his VIP club.

So Codner focused on creating a strong sense of community and belonging to attract men to join his VIP Club. He didn’t have to rely on financial incentives and discounts.

Instead he established quarterly local area meetups, provided networking opportunities and designed a platform for members to share their experiences.

And it worked.. as men joined the Fresh Heritage VIP program in droves.

Even better, they went from being customers to more valuable subscribers. Shifting from one-time random purchases to long-term consistent subscriptions.

And it showed.

Average Oder value shot above $60, EBITDA scaled 40%, and the Customer Lifetime Value increased by leaps and bounds.

Soon the VIP program had 3,000 active subscribers which caught the eye of BRANDED, an aggregator of digitally native, direct-to-consumer brands.

In 2022, they made Codner an acquisition offer he couldn’t refuse.

So as you can see, you don’t need a software company to make your business more valuable through subscriptions.

Talk to your customers, provide them a superior experience, discover what they crave on an ongoing basis, and see how you can transform them into loyal and passionate subscribers.

How can you apply it to your business? I’d be interested to hear your thoughts.

To your Success and Sanity,


Can you Drive up Recurring Revenue?

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