Gillette Co., the world’s
largest maker of razors, will raise U.S. prices by an average of
3.5 percent on its Mach3, Venus and Sensor lines next February to
pay for more spending on product development.
The increase, the first in 13 months, will raise Mach3 and
Venus prices by about 50 cents, to $8 to $9 for a razor or package
of replacement blades, Gillette spokeswoman Michele Szynal said.
The increase excludes Mach3Turbo products, priced at about $9,
because the line was just introduced, she said.
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Razors and blades remain one of the few product lines where
consumers have been willing to pay higher prices because it’s easy
to tell a difference in how they work, analysts have said. By
contrast, Kimberly-Clark Corp. last month canceled a price
increase on diapers, while Procter & Gamble Co. has cut prices on
its Swiffer WetJet mop, Pert shampoo and Bounty paper towels.
“We take price increases to reinvest in the business, to
deliver technology-advanced products to the consumer,” Szynal said.
Shares of Boston-based Gillette, which also makes Duracell
batteries and Braun appliances, rose 36 cents to $30.86 at
4:01 p.m. in New York Stock Exchange composite trading.
Gillette introduced its triple-bladed Mach3 razor with
replaceable blades in 1998. At the time, some investors questioned
whether consumers would pay almost $7 for a razor, a third more
than competing lines.
Excluding disposables, Gillette sells more than 80 percent of
razors and replacement blades in the U.S. Sensor-brand razors were
introduced in 1990.
Bloomberg News
