Aaron Krause pitches the Sharks on his patented and exclusive scrubbing pad in episode 407 of Shark Tank.
Scrub Daddy is a cleaning products firm created in 2012 by Aaron Krause, a professional detailer.
Scrub Daddy can handle many household cleaning duties, from dishes to patio furniture. It automatically adjusts its stiffness based on the temperature of the water.
Scrub Daddy is well known for manufacturing a sponge in the shape of a cheerful face.
A sponge is made up of a polymer with varying textures. It becomes softer when placed in warm water and harder in cold water.
Aaron owns a thriving automotive aftermarket business and invented Scrub Daddy as a pad for cleaning the hands of auto mechanics.
He discovered one day that Scrub Daddy worked well in the kitchen when he was cleaning up around the house. Aaron converted Scrub Daddy into a household item and landed a spot on QVC!
What Is Scrub Daddy?
SCRUB Daddy is a company that manufactures cleaning products primarily known for their happy face sponges.
The Scrub Daddy sponge is made of polymer. In contrast, most sponges are composed of cellulose, polyester, or nylon, which allows the sponge’s texture to change in response to temperature changes in water.
Soft sponges become harder in cold water, and hard sponges become softer in hot water.
The company also sells a Sponge Daddy, a Scour Daddy, a PowerPaste, and the Scrub Daddy, which comes in many colors and designs.
|Company Name||Scrub Daddy|
|Product||A sponge with a flex texture that is soft in hot water and hard in cold water|
|Investment Asking For||$100,000 For 10% equity in Scrub Daddy|
|Final Deal||$200,000 For 20% equity in Scrub Daddy|
|Episode||Season 4 Episode 7|
|Business Status||In Business|
Who Is The Founder Of Scrub Daddy?
Aaron Krause, an inventor, and entrepreneur, is Scrub Daddy’s founder. Aaron obtained a bachelor’s degree in psychology from Syracuse University in 1992.
The following year, he established his first company, Dedication to Detail, Inc. He spent over sixteen years with this company before establishing his second venture, Ion TEch Wear.
Scrub Daddy was his third and most successful company to date. He served as CEO and President from May 2012 until today.
Scrub Daddy Before Shark Tank
Aaron Krause’s story is one of the most well-known start-ups, beginning in the 1990s with a tiny vehicle-washing firm that developed into a sizable US-based company selling automobile buffing pads worldwide.
Aaron Krause developed his own line of buffing and polishing pads after damaging his own car while cleaning it.
A global conglomerate corporation, 3M, acquired the company in August 2008.
3M chose not to acquire Krause’s sponge inventions, leaving them in his firm.
Krause began using the leftover sponges five years later to clean his dishes and lawn furniture after discovering that the stiffness of the sponges varied with temperature. It worked so well that I used one inside to wash dishes.
As he stated in one of his interviews, “It was then that I realized the stiffeners in the foam changed with temperature, becoming soft in warm water and hard in cold water.”
After this, Krause decided to put his experience to better use by applying for season four of Shark Tank.
How Was The Shark Tank Pitch Of Scrub Daddy?
Aaron entered the Shark Tank seeking $100,000 in exchange for a 10% stake in the Scrub Daddy.
He has already earned over $100,000 in the four months leading up to taping and is on track to have his product in 3,000 retail stores.
The Sharks broke into a feeding frenzy after Aaron made an “infomercial-like” pitch!
Robert believes the product will not sell in a retail context and withdraws.
Mark chose not to be involved with a product dependent on QVC sales; he opted out.
Kevin offers $100k in exchange for 50%, subject to certain conditions.
Daymond offers $50k in exchange for 15% of the remaining $50K if he can get Lori to partner with him on the remaining $50K.
Lori adores the product and says Daymond is not needed; she offers $100k in return for 30%.
Kevin counters with $100,000 and a 50 cent royalty on each unit sold until he recoups his investment, followed by a ten-cent fee going forward. Daymond then offers $125,000 for a 25% stake.
Lori increases her offer to $150K for 25% and then to $200K for 25% following a bidding war with Daymond.
Daymond admits to increasing his bid on Scrub Daddy to entice Lori to increase her price; he is eliminated.
Kevin reduces his income to 7.5 cents, but Aaron is interested in collaborating with Lori. He asks if she will accept a 20% cut, and she accepts.
Greiner and Krause sold out of 42,000 sponges on QVC the following day in less than seven minutes.
Greiner then assisted Scrub Daddy in gaining distribution in retail outlets such as Bed, Bath & Beyond.
What Happened To Scrub Daddy After Shark Tank?
Scrub Daddy’s revenue totaled more than $100 million in January 2017, making it the most profitable Shark Tank product.
The company had sold over ten million pieces and generated more than $50 million since the pitch in December 2021.
A valuation of $209 million is assigned to the company as of October 2019 based on its revenue model and business data.
According to investor Lori Greiner, Scrub Daddy has generated sales of $75 million over the last three years.
The business intends to develop and market other goods in the future, including screen cleaners, sponge Caddies, and seasonal colors.
Additionally, they are trying to have their items available in every major retailer in the United States and several overseas locations.
They intend to enlarge their corporate headquarters. They acquired the adjacent building, doubling their space to 80,000 square feet. By comparison, the company began operations in a 5,000-square-foot space.
Scrub Daddy Shark Tank Update
The fact that a product that has the sharks in such a frenzy of excitement has not only performed well but has also become the show’s most successful item is not surprising. Sales have exceeded $50 million, and over 10 million units have been shipped.
Upon his appearance on Shark Tank, Aaron was contacted by Bed Bath & Beyond and ShopRite, and he quickly reached a deal with each.
Lori Greiner quickly arranged partnerships with Staples and Target, followed by a contract with Ace Hardware shortly afterward.
Scrub Daddy now employs 50 people at Folcroft, Pennsylvania, manufactures its products.
Aaron has followed through on his promise to create further products. The Scrub Mommy and Sponge Daddy are now available with Lori’s assistance and the original Scrub Daddy.
Aaron and Lori continue to collaborate closely and have developed a strong business connection that has propelled the company to well-deserved heights.
Aaron’s remarkable success hasn’t deterred him from reaching even higher; he wants to establish Scrub Daddy as a household name on a par with cleaning giants Brillo and Lysol.
Aaron’s and Scrub Daddy’s futures are as shining as the dishes they clean.
Is Scrub Daddy Still In Business?
Scrub Daddy is still open for business and remains a staple at the market. You can buy the sponge online at scrubdaddy.com and Amazon.
The product is available in Walmart, Target, Bed, Bath & Beyond, and Lowes locations throughout the United States and worldwide for in-store sales.
The company is looking forward to producing new goods and enhancing their visibility and accessibility in the international market.