You would be hard pressed to find a company in any industry that does not offer a subscription service.
Dr. Squatch is capitalizing on this trend by providing a subscription-based soap service for men who would rather not spend their days browsing farmers markets for a natural soap solution.
Revenue: $5 million projected in 2018
Founder: Jack Haldrup
Year Founded: 2013
Headquarters: San Diego
Company Description: Soap sales and subscription service for men.
Founder Jack Haldrup started the San Diego company after being diagnosed with psoriasis in his early 20s. It was this diagnosis that Haldrup says sent him down a rabbit hole of nutrition and how it relates to skin and general health. This ultimately led to personal care products, said Haldrup.
“As a part of my journey, I stumbled on natural handmade soaps, and I really liked them, it was a way better experience,” Haldrup said.
Still, Haldrup says if he told his buddies that he went to the farmers market to buy soap, they would — in somewhat typical masculine form — laugh at him.
“I saw an opportunity to bring this product, a handmade high quality soap, ones that are sold at farmers markets, that is made in a specific way, cold process — which means mixing vegetable oils in their raw form — and bring it to a mass male audience, the average dude, just because I thought it was a better experience,” Haldrup said.
“If I can create a funny brand that they can relate to, they will try the product and actually experience it. The company’s name represents a wild and free kind of symbol of masculinity. We make the soap and we have a warehouse in house with raw materials sourced globally,” he said. Haldrup says Dr. Squatch is shipping roughly 600,000 bars of soap annually, after launching the company with his personal savings of less than $10,000.
Dr. Squatch is onto something, as it has amassed over 18,000 subscribers through various types of digital marketing, according to the company. Customers pay on average $10-$12 per month for a customized subscription of a variety of soaps. Given the size of the potential market, Haldrup says at this point there are two ways the company could move forward.
“One is to continue the growth we are doing, doubling every year. That is a very nice healthy business for a small team. Or go big and do a big exit. There is a lot in the men’s grooming category that is sold for a hundred million or a billion like Dollar Shave Club and Native Deodorant, but I do like the autonomy. We like having a small team,” he said.