Everyone has to do some cleaning daily. As a homeowner, you have to use different cleaning tools and products for other household cleaning tasks. Aaron Krause noted this challenge and rose up to the opportunity.
In 2012, he founded Scrub Daddy, a cleaning product firm. The company offered Scrub Daddy – a sponge that can handle various household cleaning tasks. This tool could adjust its stiffness depending on the water temperature.
Aaron featured on episode 7 in Shark Tank Season 4, seeking a $200,000 investment for a 20% equity share at Scrub Daddy. He pitched his idea. Did Sharks accept to close a deal with him? Read on for information on what happened to Scrub Daddy after Shark Tank and the latest updates on its progress in 2022.
Scrub Daddy Overview in Shark Tank
|Company Name||Scrub Daddy|
|Episode||Season 4 Episode 7|
|Product Offering||Scratch-free sponges for cleaning household items that deliver exceptional results.|
|Required Investment||$100,000 For a 10% stake in Scrub Daddy|
|Closing Deal||$200,000 For a 20% stake in Scrub Daddy|
|Current Business Status||In business|
What is Scrub Daddy?
Scrub Daddy is a cleaning product firm that offers happy face sponges founded in 2012. The sponges called Scrub Daddy are made of polymer, making their textures respond differently to different water temperatures. The company also offers other cleaning products, such as Scour Daddy, PowerPaste, and Sponge Daddy, in varying designs and colors.
How Does Scrub Daddy Work?
Scrub Daddy is a clean sponge with a smiley face design. The sponge has the ability to change the stiffness depending on the water temperatures and nature. It will become hard when you put it in cold water and soft in hot water. This aspect allows you to use it to clean different items in your household.
Who Founded Scrub Daddy?
Scrub Daddy was the brainchild of Aaron Krause. Aaron is a professional detailer from Philadelphia. He holds a psychology degree from Syracuse University, obtained in 1992. In 1993, Aaron launched his first company dubbed Dedication to Detail Inc.
He works in the company for sixteen years before establishing a second company Ion Tech Wear. With experience and success from his two companies, he went on to launch Scrub Daddy in 2012. He is serving as the President and CEO of this company to date.
Scrub Daddy Business before Shark Tank
Aaron Krause is an outstanding entrepreneur who began his journey in the business world in the 1990s. He launched a car washing firm which grew into a leading automobile buffing pads company.
His idea of coming up with the buffing and polishing company when he damaged his car during a cleaning session. The buffing company was later acquired by 3M – a multinational conglomerate. However, the buyer did not collect everything. They left some sponges that seem to have no value.
Aaron stated to use the sponges to clean the lawn and dishes in his household. During the cleaning processes, the Scrub Daddy idea popped up. He decided to come up with cleaning products dubbed Scrub Daddy. Aaron wanted to harness the Scrub Daddy success, inspiring him to pitch in the Shark Tank Season 4.
Scrub Daddy During Shark Tank Pitch
Aaron came to the Shark Tank seeking a $100,000 investment for a 10% equity share in Scrub Daddy. He shared how the product is going to make everyday cleaning an easy task. He stated that the company had made over $100,000 in sales for the last four years and was seeking to have the product in over 3,000 retail stores.
He went on to describe the appearance and design of the Scrub Daddy sponges saying they are cute and the most outstanding scrubbing tool in the world. He also explains how it changes its texture when put in different temperatures. To prove his sentiments, he did a demonstration by immersing two identical sponges on two separate boils consisting of hot and cold water. The results were as expected.
The Sharks noted Aaron’s passion and enthusiasm during the pitch. It was now their turn to give their verdict.
Robert was the first to bow out. He believed that this product could not sell in a retail store. He was not ready to invest in the idea. Mark doubted the profitability and market of the product. Aaron countered the sentiments stating that he had a range of products he was planning to launch. However, Mark followed Robert and bowed out too.
Kevin found the idea excellent and was willing to try his hand at the business. He wanted to know how Aaron was going to use the money requested. Aaron stated that the plan was to launch his own manufacturing facility. He also mentioned that he needed a partner who could help him make entries into the retail store space. He made an initial offer of $100 0000 for a 50% stake in Scrub Daddy. However, Aaron did not accept the deal.
Daymond also admired the product noting Lori’s success with QVC. He offered $50,000 for a 15% stake on the condition that Lori would offer the other $50,000. Now everyone turned their eyes to Lori. She downplayed Daymond’s offer and went on to offer $100K in exchange for 30% equity. She also promised to get Scrub Daddy in all stores in a few weeks.
Kevin popped up again with a new offer. He offered $100K for zero stakes in the company. However, Kevin needed 50 cents on each unit of Scrub Daddy sold until Aaron repays the investments. He also asked for 10 cents per unit in perpetuity. This suggestion opened the Shark’s eyes.
Daymond upped his offer by offering $150 000 for a 25% stake in the company. This offer sounded unique to Aaron. In the course, Lori popped back with a new offer of $100k for25 a % stake in the business. A negotiation kicked in with Kevin and Lori urging Aaron to accept their offer.
Lori upped her offer again, offering $150K for a 25% stake. Daymond could not let it go but came up with a new offer of $175K for 25%. Lori could not it go. She came back with a new offer of $200K for a 25 % stake. Daymond gave up and dropped out.
Kevin popped up offering a $100K loan and asked for 25 cents per unit until repayment and 7.5 cents per unit in perpetuity. Aaron reached Lori if she could go with 20% instead of 25%. Lori agreed to the suggestion.
Scrub Daddy Closing Deal in Shark Tank
Aaron sealed a deal of $200K for a 20% stake in Scrub Daddy with Lori. Their deal was closed.
Scrub Daddy After Shark Tank
After appearing on Shark Tank, Scrub Daddy flourished. The exposure received from the show enhanced its success. After acquiring a bigger property, the company moved to a new location in Folcroft, Pennsylvania. This step helped the company to gain connections with leading stores such as Home Depot, Target, Meijer, and QVC, among others.
The company was termed as one of the successful Shark Tank products to date in the ABC program dubbed “Swimming with Sharks” in 2020. Scrub Daddy made a revenue of over $100 million in 2017. It succeeded and grew to become one of the successful Shark Tank businesses.
Current Update: Is Scrub Daddy Still In Business?
Scrub Daddy is still in business. The company has made over 10 million units with sales exceeding $50 million. Lori facilitated a partnership between Scrub Daddy, Staples and Target, plus a contract with Ace Hardware.
Currently, it has over 50 employees in its production facility based in Folcroft, Pennsylvania. Aaron is happy with the success and looks forward to becoming a global cleaning giant. The company products are available online at Amazon and its website.
Also, people can buy Scrub Daddy sponges in Walmart, Bed, Bath & Beyond, Target, and other leading stores across the United States.
FAQs about Scrub Daddy
How does Scrub Daddy help you?
Scrub Daddy is a household cleaning sponge that helps you to give your items and lawn furniture a shining clean.
Is Scrub Daddy still successful?
Yes. Scrub Daddy remains one of the most successful Shark Tank businesses. Securing a deal with Lori – one of the sharks – has been instrumental to its success. To date, it has products across all leading USA stores. Also, you will find Scrub Daddy in many stores across the world.
What is the net worth of Scrub Daddy?
Scrub Daddy ranks as the 3rd biggest sponge provider in the US, with a net worth of $209 million.
What is Aaron Krause’s net worth?
As of July 2022, Aaron Krause’s net worth was $70 million.
Does Lori Greiner own Scrub Daddy?
Yes. Lori Greiner has a 20% ownership at Scrub Daddy. She got this equity in exchange for a $200,000 investment as a deal with Aaron.