Mike O’Dell Pitches Legit Kits In Shark Tank Season 16 Episode 9
Highlights
- A nurse and aspiring entrepreneur, Mike O’Dell, presents Legit Kits in the ninth episode of Shark Tank season 16.
- The Sharks are impressed with Mike’s enthusiastic and humorous pitch.
- The entrepreneur faces apprehensions about a large number of SKUs and inventory.
Overview
| Category | Details |
| Name | Legit Kits |
| Founder | Mike O’Dell |
| Industry | Textile |
| Product | Quilt Kits |
| Funding | Self-funded |
| Investment Ask | $150K |
| Equity Offered | 5% |
| Valuation | $3 million |
Mike O’Dell, an aspiring entrepreneur from Oklahoma City, makes his way to the Shark investors with Legit Kits. Irritated by the dull quilt kits, Mike started his venture is not one’s ‘grandma’s quilt patterns.’ Legit Kits offers easy-to-sewn foundation paper-piece patterns and kits.
Mike says that his quilt kit business’s distinctive feature is its prolific use of color. He then gives a video demo of how Legit Kits works. With over 60 designs to choose from, Mike’s venture offers something for everyone.
Legit Kits Shark Tank: What Happened On Season 16
Mike O’Dell seeks $150K for 5% equity in his humorous pitch for Legit Kits. The Shark investors praise him for his enthusiasm. Mike came up with the business as he thinks quilts will stay for hundreds of years. Father of three kids, the entrepreneur is a full-time registered nurse anaesthetist.
Legit Kits is Mike’s side hustle, as he always had a creative bug within. The entrepreneur says customer acquisition costs are $17. Plus, it costs him $125 to produce the large kits, with selling costs being $399. Barbara Corcoran feels, “That’s a really high price point.”
Lori Greiner asks about Mike’s sales. Legit Kits started back in 2020; sales that year were $30K. His average customer is a dedicated quilter. But Mike claims there are 11.1 million of them in the US alone. Sales escalated and became $140K in the next year. In 2022, Legit Kits made $400K in sales.
Mike then boasts that he hit a million bucks in sales in 2023. The Shark investors applaud his journey. The entrepreneur adds that Legit Kits’ profits in 2023 were 8.7%. However, this year, the revenue is neutral. Kevin O’Leary is ‘sad’ to learn this. During its Shark Tank appearance in 2024, sales are $825K.
Kevin wants to know about his ROAS numbers. Mike responds by saying, “My advertising has been terrible.” Barbara thinks, ‘That’s good news.’ Return on advertising is 3.5%.
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Did the Sharks Invest in Legit Kits?
Kevin O’Leary says he can help Mike acquire customers through a royalty deal. He offers $150K for 5% equity along with a $5 royalty. The only thing Kevin would do for him is ‘social media.’ Guest Shark Jamie Kern Lima asks if this is ‘royalty forever.’ Mr. Wonderful says he likes the idea.
The new offer is $150K for 5% equity alongside a $5 royalty in perpetuity. Mike reacts, ‘That’s a heck of an offer.’ Lori agrees and thinks rightly so because his margins are huge, probably the ‘biggest ever on Shark Tank.’
The entrepreneur continues saying that his quilting business is revenue neutral in 2024 as it has $350K in merchandise on racks in his warehouse ready to ship the next day after the Legit Kits Shark Tank pitch. Plus, he has got enough fabric to cut another $650K worth of kits. Jamie thinks his supply is outpacing demand.
She is also apprehensive that Mike does not have enough data on 60 SKUs to be able to order and have $350K of inventory.
Mark Cuban exits the Legit Kits Shark Tank deal as the business is not doing it for him. Barbara feels she can be a friend, not an investor, for Mike. She, too, steps out of the deal, admitting that she does not like his product.
Lori is concerned that his idea of 60 designs will backfire. So, she also does not invest. Jamie also does not make a deal. With only one offer left, Mike goes ahead with Kevin’s deal at $150K for 5% equity alongside a $5 royalty in perpetuity.
See what else is new! View other businesses featured in this episode.
