Home » Crash of 1929
Posted on 19 April 2011 | 4,686 views

Gillette Razor Stock After 1929 Stock Market Crash

The original “Gillette” Company was founded by King Camp Gillette in 1895 as a safety razor manufacturer. While working as a salesman for the Crown Cork and Seal Company in the 1890s, Gillette saw bottle caps, with the cork seal he sold, thrown away after the bottle was opened. This made him recognize the value in basing a business on a product that was used a few times, then discarded.

Gillette is widely credited with inventing the so-called razor and blades business model, where razors are sold cheaply to increase the market for blades, but in fact he did not adopt this model until his competitors did.

To sell the product, Gillette founded the American Safety Razor Company on September 28, 1901 (changing the company’s name to “Gillette Safety Razor Company” in July 1902). Gillette obtained a trademark registration (0056921) for his portrait and signature on the packaging. Production began in 1903, when he sold a total of 51 razors and 168 blades. The following year, he sold 90,884 razors and 123,648 blades, thanks in part to Gillette’s low prices, automated manufacturing techniques and good advertising.

By October 27, 1929 Gillette was trading at $124.75 per share when the first wave of selling on “Black Monday”, October 28, 1929 brought the shares down ($19.50) to close at $105.25 per share on the day. By August 11, 1932, Gillette was trading at $19.25 and hit a 1932 low of $10.375 per share.

King Camp Gillette was almost bankrupt at the time of his death, due both to his having spent large amounts of money on property, and to his having lost much of the value of his corporate shares as a result of the Great Depression.

On October 1, 2005, Procter & Gamble finalized its purchase of The Gillette Company. As a result of this merger, the Gillette Company no longer exists and its last day of market trading (Stock Symbol: G) on the New York Stock Exchange was September 30, 2005.

Resources:

The Pittsburgh Press – October 1929
The Pittsburgh Press – August 1932

  • Facebook
  • Twitter
  • Delicious
  • LinkedIn
  • StumbleUpon
  • Technorati
  • Mixx
  • Pinterest
  • Google Plus
  • Reddit
  • BlinkList
  • Blogger
  • Tumblr
  • Digg


Tags: , , , , , , , , , , , , , , , , , , ,

Rate This Article!
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...Loading...

One Comment »

Leave your response!

Add your comment below, or trackback from your own site. You can also subscribe to comments via RSS.

Be nice. Keep it clean. Stay on topic. No spam.

You can use these tags:
<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

This is a Gravatar-enabled weblog. To get your own globally-recognized-avatar, please register at Gravatar.

IMPORTANT! You need to solve the following simple math (so we know that you are a human) :-)

What is 9 + 13 ?
Please leave these two fields as-is:
CommentLuv badge

Incoming Search Terms!

stock crash, King Camp Gillette, gillette razor, gillette stock