Podcast Summary: How I Built This with Guy Raz Episode: Spinbrush: John Osher – The Electric Toothbrush That Sold for $475M (February 16, 2026)

Episode Overview

This episode features the remarkable entrepreneurial journey of John Osher, creator of the Spinbrush—a low-cost electric toothbrush that became a massive consumer hit and sold to Procter & Gamble for $475 million. Host Guy Raz uncovers how Osher’s diverse ventures, from earring shops and baby products to innovative toys and candy, culminated in the creation of this disruptive product. Osher shares invaluable lessons on resilience, creative problem-solving, and the role of luck in entrepreneurial success.

Key Discussion Points & Insights

1. Early Entrepreneurial Spirit and First Ventures

• Earring Business (08:30–11:00)

  • Osher started an earring shop near the University of Cincinnati during the 1960s hippie movement.
  • Lesson learned: “You set your price on what the market will pay, as opposed to what you paid for it.” (John Osher, 09:39)
  • Sold earrings at $4.99 that cost 19¢; outsold neighboring stores charging 39¢.
  • Used profits to travel Europe, emphasizing the concept of being “rich within the context of your life.”

• Secondhand Clothing Store & Confidence in Starting Businesses (12:04–13:33)

  • Opened a vintage clothing shop in Boston as a college student.
  • Early entrepreneurial successes built confidence to pursue bigger opportunities.

2. Life at a Commune and Acquiring Practical Skills

• Spiritual Exploration with the Gurdjieff Group (13:58–16:44)
  • Spent six years at a commune, learning plumbing, carpentry, landscaping, and trades.
  • “I had virtually no skills… it turned out I was good at this stuff.” (John Osher, 16:15)
  • Emphasized that contentment is relative and he never worried about “what’s next.”

3. Inventor Mindset and Serial Pivoting

• Energy-Saving Devices & Pivot to Baby Products (17:30–19:56)

  • Started with products like hot water heater jackets during the energy crisis.
  • Invented “Crawlspace,” a portable baby playpen, after recognizing changing market needs.
  • “I stuck by my guns. And so while we still had the … diminishing energy business, I developed this baby product called Crawlspace.” (19:10)

• Innovation in Baby Products (20:04–22:07)

  • Created the “Rainbow Toy Bar”—an early version of the now ubiquitous baby activity gym.
  • “Every baby in the world uses some form of this now. But back then, it did not exist.” (John Osher, 22:02)

4. Navigating Setbacks and the Toy Industry

• Sale to Gerber and Founding Cap Toys (22:23–24:36)

  • Sold baby products company to Gerber for $2M.
  • Launched Cap Toys, innovating with Blooming Dolls and Crunch Balls.

• Facing Crisis and Entrepreneurial Terror (24:36–27:54)

  • Large orders from Toys R Us canceled, putting company at risk.
  • Overcame “entrepreneurial terror” by methodically tackling problems:
    • “Once I started that and I got over the fear, I went to work… And it all started with me getting out of bed.” (John Osher, 27:54)
  • Created the successful electronic arcade basketball hoop, saving the business.

5. Entry into Battery-Powered Candy & Major Exit

• Spin Pop – The Spinning Lollipop (31:26–35:00)
  • Acquired innovations from inventors including the battery-powered Spin Pop lollipop.
  • Massive hit: “We were probably in the interactive candy back then… doing 40, $50 million of the candy.” (John Osher, 34:45)
  • Cap Toys sold to Hasbro for over $160 million; Osher briefly retired.

6. Invention and Launch of the Spinbrush

• Idea Generation and Tech Crossover from Toys (35:33–38:02)

  • Inspired by expertise in sourcing mini batteries and motors for toys and candy.
  • Sought to disrupt the dental market by offering a $5 electric toothbrush, competing primarily with manual brushes.

• Product Development and Design Challenges (39:48–43:11)

  • Solved issues of battery life, torque, and waterproofing with extensive testing.
  • “We needed to get to a point that we were offering a product that was much better than they could get manually.” (John Osher, 43:11)
  • Packaging innovation: “Try Me” button allowed customers to see brush in action, crucial for credibility and sales (43:51–45:21).

7. Overcoming Early Product Failure

• Quality Crisis and Tough Choices (47:54–49:25)
  • First 100,000 units were defective due to water infiltration and corrosion. Osher made the hard call to scrap 400,000 units.
  • “If I continue to sell this, it will die… If I didn’t do it, it would have failed.” (John Osher, 48:13–49:25)

8. Negotiating the Sale to Procter & Gamble

• Strategic Approach—Letting Buyer Come to You (50:38–56:19)

  • Osher staged a ruse by offering to license Crest brand to get attention, rather than pitching the company outright.
  • “Anytime you try to sell something, you get about one tenth of what you get when they want to buy you.” (John Osher, 52:19)
  • P&G eventually made the acquisition offer: $165 million up front plus a three-year earnout.

• Explosive Growth and Early Buyout (57:01–60:22)

  • Spinbrush far exceeded P&G’s projections: did over $300M in sales in a year.
  • To cap the enormous earnout, Osher negotiated an early settlement for a total of $475 million, finalized just 21 months into the deal.
  • “Somewhere between zero and infinite, there’s a number we can both live with. And we went back and forth and came up with a settlement.” (John Osher, 60:00)

9. The Aftermath: Industry Impact and Reflections on Luck

• P&G Sells Spinbrush Due to Antitrust (61:17–62:38)

  • Sold Spinbrush to Church and Dwight while merging with Gillette.
  • Church and Dwight didn’t innovate further, and many knockoffs now fill the shelves.

• Lessons on Entrepreneurship, Serendipity, and “The Magic” (64:15–66:28)

  • Osher attributes success to a mix of “gratitude rather than pride,” diligent practice, and intuition.
  • “I’d sit on the couch and I would just ask the universe…what do I do? …100% of the time, I always got the answer.” (John Osher, 65:31–66:28)

Notable Quotes

• On Pricing and Perception:
  “You set your price on what the market will pay. What's the optimum price for a market as opposed to what you paid for it?”
  – John Osher (09:39)

• On Facing Entrepreneurial Fear:
  “It’s called entrepreneurial terror... I just wanted to hide under the bed.”
  – John Osher (24:36)

• On Strategic Negotiation:
  “Anytime you try to sell something, you get about one tenth of what you get when they want to buy you.”
  – John Osher (52:19)

• On Luck and Preparation:
  “Luck enters into everybody’s success. But as Gary Player said… he practices six hours a day, and somehow he gets luckier.”
  – John Osher (64:50)

• On Intuition and Problem Solving:
  “I’d sit on the couch and just ask the universe… what do I do? 100% of the time, I always got the answer.”
  – John Osher (66:28)

Important Timestamps by Segment

• [05:07] Catastrophic first production run: “Our first hundred thousand pieces were defective…”
• [08:30] First earring store experience and pricing lesson
• [13:58] Life at a commune and early adulthood mindset
• [17:48] Inventing baby and energy-saving products
• [22:55] Entering the toy business—Cap Toys, early product struggles
• [24:36] “Entrepreneurial terror” and rebounding from near failure
• [31:38] Turning a novelty lollipop into a major business (Spin Pop)
• [35:33–38:02] Inspiration for Spinbrush: leveraging toy tech for oral care
• [43:51] Critical importance of “Try Me” packaging
• [47:54] Scrapping 400,000 defective units to save the business
• [50:12] First-year financial results and targeting P&G
• [52:19] P&G negotiation strategy: Playing hard to get
• [57:01] P&G's risk, earn-out dilemma, and early $310M settlement
• [61:10] P&G’s forced sale of Spinbrush during Gillette acquisition
• [64:50] Reflections on luck, intuition, and longevity

Memorable Moments

• The “Try Me” packaging, drawn from Osher's toy industry experience, revolutionized toothbrush marketing and helped Spinbrush stand out at retail (43:51–45:21).
• When presented with a massive product defect, Osher’s resolve and willingness to scrap the inventory proved pivotal (47:54–49:25).
• Ingenious negotiation with P&G: Osher’s staged pitch for a licensing deal provoked them into wanting to buy Spinbrush outright (52:19–56:19).

This episode is a must-listen for entrepreneurs, product innovators, and anyone interested in the unexpected paths to success. Osher’s blend of street smarts, humility, and creative engineering—along with Guy Raz’s probing, engaging interview style—make for a riveting and insightful masterclass on building iconic consumer products.