If you are willing to know about Legacy Shave net worth 2024 then you are in the right place. In this particular blog post, we are going to cover Legacy Shave net worth including story.
Legacy Shave: A unique shaving cream brush called Legacy Shave was created.
On November 18, 2022, it was featured in Shark Tank season 14 episode 7. Mike Gutow, the founder of Legacy Shave, entered the competition hoping to win $300k for 10% equity.
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But how did Legacy Shave get to this point in its financial standing after Shark Tank?
Along with Legacy Shave net worth we have covered all the parts like, the story of Legacy Shave, the founders of Legacy Shave, and the legacy shave shark tank conversation.
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Story of Legacy Shave
Approximately 28 years ago, Mike Gutow and his brother gave their father a gift for Father’s Day, thinking he would love it.
Mike’s father, a daily shaver who complained about the bumps and burns caused by his electric razor, received an expensive old-fashioned shaving brush from his sons.
However, he dismissed it, stating, “I’m not going to be able to use this. It’s just not for me.
I don’t have time for this.” Crushed, Mike and his brother brainstormed and suggested, “Why not put a brush on that, and now you have a shave brush?”
They quickly went to the hardware store, where Mike’s father used a clay-like putty to shape a disposable paintbrush.
The next day, the brothers were surprised to see their father strutting down the aisle, smiling ear to ear.
Mike’s father proudly announced that their improvised shave brush worked perfectly, providing him with the best shave he had ever had.
Realizing the potential of their idea, Mike’s father, who knew a plastic injection molder, initiated the process.
Four months later, they received 20 prototypes.
However, the story took an unexpected turn when Mike revealed to the Sharks that many inventors invest their life savings to protect their ideas, only to face challenges from larger companies.
Fearing the possibility of being overshadowed, Mike, his father, and brother put the project on hold for 20 years. Unfortunately, they lost their father to cancer.
A year after his passing, the brothers revisited their father’s basement and discovered not just 20 or 30 prototypes, but a staggering 3,000 originals.
Their father had assembled these during his chemo treatments to keep himself occupied.
Opening the boxes, they found a note from their father, a message from beyond the grave: “Don’t wait, life’s short, take the shot.” At that moment, the brothers realized they had to pursue their invention.
Legacy Shave summery
|Mike Gutow and Dave Gutow
|Shaving Cream can and attachable shave brush
|$300K for a 10% equity
|$700K + 5% equity
|Season 14 Episode 7
|7 Friday, November 18, 2022
|Royal Oak, Michigan, USA
Shark Tank Appearance
Shark Tank’s Appearance is a great contribution to Legacy Shave net worth. The CEO and founder of Legacy Shave, Mike Gutow, entered the Tank and requested $300k in investment for 10% of his high-end shaving brush company.
They presented their product, the Legacy Shave brush, which is a patented shaving brush that attaches to any can of shaving cream.
The brush is designed to exfoliate the skin, lift the hair follicles, and create a richer, thicker lather.
This results in a closer, more comfortable shave. Also, check Mason Gooding’s Net Worth.
The Sharks were initially skeptical of the Legacy Shave brush. They questioned whether it was really necessary and whether it would be successful.
However, they were eventually won over by the brothers’ enthusiasm and the product’s potential.
Lori Greiner was particularly impressed by the product. She saw the potential for Legacy Shave to be a major success and she was willing to invest a significant amount of money in the company.
Lori offers a royalty deal. Lori offers to pay $1 million for 100% of Mike’s company and, on top of that, to pay him a 3% royalty on net sales every year going forward.
As per Lori, this is probably the coolest shaving experience she has ever felt.
The Gutows were initially hesitant to accept Greiner’s offer, as they wanted to retain more equity in their company.
Mike said to Lori, “Would you be willing to consider an arrangement where we retain 5% equity in our company, ensuring that we can continue our legacy?“
Lori’s counter offer: $700k + a royalty of 3% of net sales in perpetuity for 95% of the company.
However, Mike continued, “I’m ready to take a $300k risk. I still want to own stock in this business with my brother.
I’ll take that deal, Lori, for $700k, and we keep 5% equity in our company.
Conversation between Gutow and Sharks
Warning: It’s long. If you want, you can jump to the Legacy Shave net worth.
Here is a transcript of the conversation between the Gutows and the Sharks:
Mike Gutow: We’re here today to talk about a product that’s going to change the way you shave.
Robert Herjavec: How does it work, Mike?
Mike: Do a couple small gentle pumps, a little bit that’s all you need.
Robert Herjavec: This is a good saving cream. What do you sell it for?
Mike: We sell it for $24.95.
Robert Herjavec: What does it cost you to make it?
Mike: Cost me $5.39 to make, just a brush we sell for $19.95.
Lori: How did you come up with this?
Mike: Story of Legacy Shave.
Robert Herjavec: Let’s get back into the business. What are your sales for this product?
Mike: To date, we sold over a hundred thousand units and did a million dollars.
Lori: A hundred thousand units, a million dollars?
Mark Cuban: That’s over one period of time?
Mike: Five years.
Kevin: Give us the sales over the last five years, year by year.
Mike: One year we did about seventy thousand dollars.
Kevin: Did you make any money that year?
Mike: We have not.
Mike: In fact, we’ve been in a red every single year sharks.
Kevin: Year two.
Mike: In year two, 370K, in year three we did about 390K.
Robert: Last year, what were the sales?
Mike: Last was close to ninety-six thousand dollars.
Kevin: What will they be this year?
Mike: So far, we’ve done forty-two thousand dollars but we do have a purchase order for sixty-three thousand dollars.
Mark: The trend is not your friend, Mike. What’s going on?
Robert: 390 then they start dropping, why?
Mike: We are a family bootstrap startup company. We have taken as far as we can. We are out of money.
Robert: How much have you lost over the five years?
Mike: As a family, we have personally invested over four hundred thousand dollars into this business. We really try to be a director of consumer products. However, my brother and I, are trying our best. We are not geniuses.
Barbara: Mike, just interrupt you just for a moment. My large concern with you is you’re a phenomenal salesman but you’re not a clear communicator. You’re all over the map and I don’t think we’d be great partners, for that reason I am out.
Mark: It’s not a good set of circumstances for us that you’re out of money, right. So, It’s not a fit for me. I wish you guys the best but for those reasons, I am out.
Mike: You haven’t seen the best thing about this product. Out patents do not just cover the shaving industry. Our patents cover the entire aerosol industry out there.
Barbara: Cleaning products.
Kevin: The nodes take a shot on the shaving that was your from dad talking to you beyond the very moving grave. I’ve been on Shark Tank for 14 years. I’ve never heard a story like this. So, the shaving category that you’re competing in is incredibly crowded and dominated by behemoths. It’s a really big challenge. I am not going to take that journey with you. I am out.
Robert: I see a lot of challenges with it. I wish you all the best but I don’t want to be in the shaving cream business. So, Mike, it’s not for me. I’m out but I think Lori still hasn’t.
Lori: I’m left. I really like the interchangeability of this cap onto anything and I like the thought that there are other things that you can do with it and that you have a patent. Now, all that being said you don’t have many sales. You haven’t proven this. But I also look at it as your family and you don’t have a lot of experience in the consumer product world. I am gonna take a real flyer on you, Mike. This is really not something I ever would think I would invest in but I also know good product when I see it. So, I am going to give you a royalty deal. But it’s not like Kevin’s. I am going to give you a million dollars for 100% of your company. And I will give you a royalty of 3% of the net sales for life.
At last, Lori and Mike make a deal for $700k, and we keep 5% equity.
Legacy Shave Net Worth 2024
According to available online information, Legacy Shave net worth exceeds $3 million in 2024.
The company allegedly generated approximately $42k in sales during the year it appeared on the show. Furthermore, it is stated that Mike and his family initially invested around $400k to establish the company.
Additionally, the sources suggest that Legacy Shave managed to sell over 100k units and generate around $1 million in revenue within the five years leading up to its appearance on the show.
However, since the episode recently aired, there is limited information regarding the specifics of the deal that took place in April 2023.
As for the founders, Mike Gutow and Dave Gutow, it is claimed that Legacy Shave net worth as of 2024 is $3 million.
Legacy Shave net worth will be more clear to you if you have read the full conversation.
Is legacy shave still in business?
Based on available online records, Legacy Shave remains operational as of April 2023. The company experienced success through a Kickstarter campaign, garnering significant attention and receiving positive responses.
It achieved further exposure by being featured on popular shows such as Good Morning America, Today Show, and QVC following its appearance on Shark Tank.
After the Shark Tank episode, Legacy Shave introduced a special product related to the show.
While their social media presence is not regularly updated, their official website still offers the product for sale.
Given the recent airing of the Shark Tank episode, details about the deal and the company’s most recent revenue update are not yet available.
We have done Legacy Shave net worth and now it’s your turn to know about what happened between Shark Tank and legacy shave net worth.
In this blog post, we have covered some unknown facts that you should know. Do you think the Legacy shave shark tank appearance was a bad idea?
Legacy Shave now sells its products on the website called “Legacy Shave”.
If you have any questions then feel free to comment down your thoughts.
Note: Legacy Shave net worth is written based on online available information.