It doesn't make sense. Why do all the Sharks have huge smiles on their faces, and yet have such negative comments about this company?
Which pitch made the Sharks smile like never before and simultaneously receive such harsh criticism?
The answer is...
Squeeky Knees was created by Ivan Barnes and Lisa Evans, a young couple with two adorable children. After constantly repairing boo-boos on her kids' knees, Lisa took her mother's advice to come up with something that would prevent her kids' knees from getting scuffed up and bruised in the first place. And so, Squeeky Knees was born!
Squeeky Knees are soft, squeeky pants for the baby on the go. Each leg contains a squeaky knee pad which minimizes bruises, and maximizes awareness as to the kid's whereabouts. Ivan and Lisa came into the Shark Tank asking the Sharks for an $80,000 investment in exchange for 20% of their company. The problem was, none of them were interested in investing. Here's why:
1) Not enough sales. Lisa created Squeeky Knees three years ago, and has since sold only 500 sets, generating a measly $10,000 in revenue. That's less than $3,500 a year!
2) Not enough time. Ivan has a career other than Squeeky Knees which consumes most of his work time. And Lisa, although she doesn't have a career per se, she is a full-time-mom which requires lots of energy and dedication to each of her children's schedules which undoubtedly includes doing carpool runs, playdate pickups, and toy shopping! As Mark Cuban put it, as a business owner you have to work like there's someone working 24/7 to kick your butt. And with so many external responsibilities, it would just be too hard to keep up with the demand and stay ahead of the competition.
3) Not enough Tylenol. The sound of little kids squeak as they crawl around the house is adorable...for a few minutes. After that, one can only imagine the headache that follows. Just imagine being home all day listening to a continuous squeaky noise that doesn't stop until you put your child to bed. The Sharks were getting tired of the sound after squeezing it themselves a few times, let alone listening to it all day long.
These three reasons were more than enough to make each Shark say "I'm out" (and probably make them want to take a nap after listening to all that noise). So that explains the negative feedback. But what's with the enormous grins on each of their faces? Let me show you:
Now you're smiling too! Why? Because it's irresistible. Baby laughter is contagious and no matter how hard you try, it's almost impossible not to laugh along with. And the same way you found yourself smiling and laughing along with the babies in this video, the Sharks had the same reaction. Every single one of them chuckled and smiled like never before in the Shark Tank as they "awwwed" the undeniable cuteness being portrayed on the screen in front of them. And that's where Ivan and Lisa hit the nail on the head. Starting off their pitch with a video that lifted the Sharks' spirits and instantly put them in a good mood was the best way possible to start off their presentation. The only issue was that the hard facts and realizations that came after, had the opposite effect. The Sharks were in love with the video, not the product. And that explains their smiley faces and negative feedback.