Legacy Shave – Shave Brush
DEAL
EPISODE SUMMARY
🕓 Air Date: November 18, 2022
Asking For:
$300,000 for 10%
Investor:
Lori Greiner
Deal:
$700,000 for 95% + 3% royalty of net sales in perpetuity
PRODUCT SUMMARY
Legacy Shave offers a patented universal shave brush and dispenser that revolutionizes the shaving experience by exfoliating the skin, reducing razor bumps and burns, and minimizing product waste.
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Background Story
Legacy Shave is the brainchild of Mike Gutow from Metro Detroit, Michigan. The idea behind Legacy Shave was born out of a Father’s Day gift for Mike’s dad, who had always struggled with razor bumps and burns caused by traditional shaving methods. Mike and his brother attempted to improve his shaving experience by gifting him an old-fashioned shave brush. However, Mike’s dad found it too time-consuming and impractical for his daily routine.
Years later, after Mike’s dad passed away from cancer, Mike and his brother rediscovered their dad’s prototype for a shave brush with a twist—this one had a dispenser built in. Encouraged by the message their late father left behind, urging them to take a shot at their invention, Mike and his brother decided to bring Legacy Shave to life.
They recognized the potential of their innovative shave brush, not just in revolutionizing shaving but also in other industries that use aerosol-based products. With a patent in hand and a mission to honor their father’s legacy, they embarked on their entrepreneurial journey.
The Product
Legacy Shave’s patented shave brush and dispenser are designed to provide an efficient and skin-friendly shaving experience. The Legacy Shave Brush combines the old-world technology of the shaving brush with today’s modern shaving cream can.
The Legacy Shave brush is priced at $19.95, while the accompanying shaving cream is sold for $24.95. The product has gained popularity among consumers who seek a more comfortable and effective shaving routine.
How It Went
The company’s position before Shark Tank
Legacy Shave has been in business for five years and has experienced both successes and challenges. Over that time, the company has sold over 100,000 units, generating more than $1 million in sales. However, Legacy Shave has faced financial challenges, with the founders personally investing over $400,000 into the business. They have yet to turn a profit, operating at a loss each year.
The company’s sales trend has been fluctuating. In the first year, they achieved approximately $70,000 in sales, which grew to $370,000 in the second year. Sales then reached about $390,000 in the third year. However, last year’s sales dropped to nearly $96,000, and the current year’s sales are projected to be around $105,000.
Legacy Shave primarily operates as a direct-to-consumer product, with aspirations to disrupt the shaving industry. They have a patent that not only covers shaving but also extends to the entire aerosol industry, potentially opening doors to diverse markets such as cleaning products.
The Negotiations:
After four Sharks opted out of the deal, Lori Greiner offered $1 million for 100% of the company, along with a 3% royalty on net sales. The founders countered, asking for $700,000 for 95% of the company to retain 5% equity. Lori accepted this deal, and Legacy Shave accepted her offer.
