SnoofyBee is a company founded by a husband and wife from Albany, OR, that makes a changing pad to help entertain children while changing diapers. The pad contains a folding structure that forms a fence to keep baby's hands away from their lower bodies while the diaper is being replaced. But it also serves as a platform for entertainment for the kid to keep their attention off of what is happening and a lock to keep them in place.
The entrepreneurs wanted to begin the business after having made a prototype and seeing people's reactions to it.
Previously, SnoofyBee attempted to raise $10,000 with a Kickstarter campaign. Not only did they meet their goal, they exceeded it, raising $120,000. Unfortunately, when their product arrived from their manufacturer, they discovered that around 30% of their stock was unsellable. The husband quit his job, hired people to inspect the products and sew to bring them to completion.
In their first year, they had sales of $140,000 as they also had in the previous year to airing. They've had a total of $700,000 sales over the course of the product's lifetime but project earning $650,000 by the end of the current year. All sales have been though an online store and on Amazon. They do not sell in retail locations because of the manufacturing issues and cashflow necessary to make it happen.
Each pad costs $6 per unit and sold for $29.99 online. Marketing in the previous year was 40% of revenue. In additional, the entrepreneurs draw $4,000 a month to pay themselves.
Lori wants to put it into Bye Buy Baby with her other like products.
This deal aired on Episode 9.08.
Making A Deal
Lori was a natural fit for SnoofyBee and she offered $120,000 in exchange for 20% of equity. While this was $35,000 more than the entrepreneurs had original asked, it was in exchange for double the equity originally offered. This resulted in a pretty reasonable bite of only $250,000 off the original valuation, a number that will surely be more than made up for by the new partnership