SnoofyBee – Diaper Changing Pad
DEAL
EPISODE SUMMARY
🕓 Air Date: November 5, 2017
Asking For:
$85,000 for 10%
Investor:
Lori Greiner
Deal:
$120,000 for 20%
PRODUCT SUMMARY
SnoofyBee offers a Clean Hands Changing Pad, a portable changing station designed to redirect a baby's curiosity during diaper changes, making it cleaner and more enjoyable.
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Background Story
Mike and Amy, parents of five children from Albany, Oregon, developed the idea for SnoofyBee when they faced the challenge of dealing with curious hands during diaper changes. They created a clean-hands changing pad with a patent-pending redirection barrier that keeps the child’s hands away from the mess.
The idea originated from a rough prototype for one of their sons, and after receiving positive reactions at a party, they launched it on Kickstarter, raising $120,000 against a $10,000 goal. Facing challenges with manufacturing and realizing 30% of their units were not finished upon delivery, Amy quit her job, and with friends and family, they overhauled their house to complete the production.
The Product
The Clean Hands Changing Pad is a portable changing station with a unique redirection barrier designed to keep a baby’s hands away during diaper changes. The pad can be hung with toys to make diaper time more enjoyable or laid flat like a traditional changing pad.
It features a comfortable foam pillow and a water-resistant surface for easy cleaning. The product is versatile, catering to parents on the go and providing a solution to the common issue of curious hands reaching during messy diaper changes.
Priced at $29.99, the unit cost is around $6. SnoofyBee has garnered attention for its innovative approach to simplifying a common parenting challenge.
How It Went
The company’s position before Shark Tank
SnoofyBee, in operation for about two years, has seen impressive growth, with total sales reaching $700,000. The first year brought in $140,000, followed by $400,000 in the second year, and a projected $650,000 for the current year. They primarily sold the product online through their website and Amazon. However, the founders faced setbacks with manufacturing and cash flow, hindering their entry into retail.
They have not attended trade shows or secured deals with major retailers like buybuy Baby. Marketing expenses accounted for approximately 40% of revenue, and despite the challenges, SnoofyBee managed to turn a profit, allowing the founders to pay themselves around $4,000 per month.
The Negotiations:
The Sharks were impressed with SnoofyBee’s story and the innovative product but raised concerns about the single-product focus and the challenges of marketing. Mark Cuban and Bethenny Frankel opted out, citing concerns about marketing difficulties. Kevin O’Leary proposed a deal contingent on a patent being issued, offering $85,000 for 20%. Lori Greiner and Robert Herjavec expressed their interest.
Robert Herjavec offered $125,000 for 15%. Lori Greiner proposed $100,000 for 20%, along with financing assistance for large orders. The founders countered with a $120,000 offer for 20%. Lori accepted the counteroffer, and SnoofyBee secured a deal with Lori Greiner. The founders were thrilled to have Lori on board, recognizing her as the ideal partner for their product.
