John Osher didn't try to make a cheaper version of the $80 electric toothbrush. Instead, he positioned the $5 Spinbrush as a superior alternative to the $3 manual toothbrush. This re-framing of the competitive landscape created an entirely new market category.
When a canceled Toys R Us order threatened to bankrupt him, John Osher felt "entrepreneurial terror." He overcame it by forcing himself out of bed after three days, writing a plan, and directly appealing to the retailer for a second chance, which he received.
John Osher's first business succeeded by selling 19-cent earrings for $4.99, establishing high perceived value. A competitor sold the same item for 39 cents and failed. This shows that pricing should reflect what the market will bear, not just your cost of goods.
John Osher produced a $5 electric toothbrush because his previous venture, spinning lollipops, made him a massive buyer of small motors and batteries. This scale allowed him to pay pennies on the dollar for components, a supply chain advantage competitors couldn't replicate.
To overcome skepticism about a $5 electric toothbrush, John Osher borrowed the "Try Me" button concept from the toy industry. This allowed customers to feel the motor's power in-store, instantly building credibility and driving sales in a category unfamiliar with interactive packaging.
When Spinbrush's first units proved defective (with 400,000 in the warehouse), John Osher scrapped the entire inventory. He knew that for a consumable product, a bad first experience would be fatal, choosing long-term brand integrity over short-term financial recovery.
Osher's team realized users didn't want to learn a new way to brush. Their solution was a hybrid head with an oscillating top part and fixed lower bristles. This let people brush normally while getting electric benefits, creating a major user advantage and a strong, defensible patent.
Instead of asking P&G to acquire Spinbrush, John Osher proposed licensing the Crest name. This "ruse" gave him access to key decision-makers. When P&G agreed to the license, he strategically declined, prompting them to suggest the acquisition he wanted all along.
John Osher defined being "rich" within the context of his life at the time. The $6,000 earned from his first business made him wealthy as a student, funding his next adventure. This mindset of achieving small-scale financial freedom early and often provides confidence for bigger goals.