Scrub Daddy Sponge

Aaron Krause’s parents, both doctors, were concerned about what Aaron was going to do after college. All they knew was that he wasn’t headed to medical school. When they found out that his fervent desire was to own and operate a car-washing business, they were puzzled and still concerned.

Aaron was happy as president and CEO of his business, but dissatisfied with the quality of the materials he used, particularly the buffing pads. Always the inventor, he set out to find an alternative and succeeded with a urethane foam. He eventually sold his car-washing business (at a tidy profit) to manufacture his buffing pads. He also invented the machinery to produce the pads. Being hands on, literally, his hands were always grimy, so his next goal was to invent something to clean the oil and grease off of his hands. A German company custom made a foam for him. Aaron cut a circle out of the foam, cut two holes into it to clean his fingers, and ridged the edge for an easy grip. Not only did it clean his hands perfectly, but it rinsed out completely clean. After a while, 3M swooped in and bought his business in what Aaron calls “a life-altering deal.” But 3M did not want the funny-looking little sponge.

scrub daddy shark tank product line

Aaron was sure he could sell the sponge himself as an alternative to the harsh chemicals and pumice that auto mechanics, detailers and body shops use, but his target market was not interested. So he packed up the sponges and marked the boxes “Scrap.” Fortunately, after much nagging by his wife, he finally got around to cleaning the lawn furniture. He figured that would be a good way to use up some of the scrap material. It was only then that he realized he had something unique: a sponge that changed texture, soft in hot water, stiff in cold water—a dual duty sponge. He then tested it when washing dishes; that’s when it got the “smile” to clean spoons. (The very catchy name, Scrub Daddy, is due to the tradition in Aaron’s family of men doing the dishes.) Next stop, Shark Tank.

Scrub Daddy in the Shark Tank

Aaron Krause presented Scrub Daddy during Season 4, Episode 7. Krause sought a $100,000 investment for a 10% equity stake in his company. He presented the Scrub Daddy sponge, a versatile cleaning tool that changes firmness with the water temperature, initially designed for cleaning mechanics’ hands but later repurposed for household use.

During the pitch, various sharks expressed different levels of interest and concern. Robert Herjavec doubted the product’s retail viability and opted out. Similarly, Mark Cuban was hesitant, worrying about the product’s heavy reliance on QVC sales. Kevin O’Leary’s initial offer was $100,000 for 50% equity, subject to certain contingencies. Daymond John, seeing potential in a partnership with Lori Greiner, proposed $50,000 for 15%, contingent on Greiner matching his offer. Greiner, the “Queen of QVC,” recognized the product’s potential and engaged in a bidding war with John and O’Leary.

After several offers and counteroffers, including equity stakes and royalty deals, the final agreement was struck with Lori Greiner. Krause accepted her offer of $200,000 for a 20% equity stake, marking the beginning of a successful partnership that significantly boosted Scrub Daddy’s market presence and growth​.

Shark Tank Pitch and Deal

Season & Episode Season 4, Episode 7
Air Date October 26, 2012
Entrepreneur Aaron Krause
Product Scrub Daddy
Investment Sought $100,000
Equity Offered 10%
Initial Sales Over $100,000 in four months
Retail Plans Aimed for 3,000 retail outlets
Shark Reactions Mixed; concerns about retail and QVC reliance
Bidding War Between Lori Greiner, Kevin O’Leary, and Daymond John
Final Deal $200,000 for 20% equity with Lori Greiner

Scrub Daddy After Shark Tank

The night the episode aired, the Scrub Daddy website was overwhelmed with customers. The next day, Aaron and Lori sold 42,000 sponges in 7 minutes on QVC. In 2019, Scrub Daddy was estimated to be worth $170 million with the highest revenue of any product successfully pitched on Shark Tank. It is the third-largest sponge company in the U.S. and continues to gain on 3M.

After appearing on Shark Tank, Scrub Daddy has grown significantly and diversified its product range. Originally known for its smiley face sponge, the company has expanded to offer a wide variety of cleaning products. These include scouring pads, erasers, mops, dish wands, microfibre towels, soap dispensers, and a range of other cleaning tools and accessories​​.

Scrub Daddy’s catalog now boasts more than 20 products, ranging from the original sponges to liquid dish soap, cleaning paste, erasers, and brushes. They have also introduced environmentally friendly options, like eco-friendly sponges made from recycled plastic and coconut husks​​.

The company’s expansion is not limited to product diversity but also includes growth in its physical and retail presence. As of the last update, Scrub Daddy had 273 employees and its products were available in over 257,000 retail locations. Their products have been a significant part of the company’s evolution from a single-product venture to a multi-product, large-scale operation​​.

These developments reflect Scrub Daddy’s successful navigation and leverage of the Shark Tank platform, transitioning from a small business to a recognized brand in the cleaning products market. The company’s ability to innovate and adapt, both in terms of product development and market strategy, has been a key factor in its sustained growth and popularity.

scrubdaddy.comBuy on Amazon

Shark Tank Air Date: 10/26/12 – Season 4 – Episode 7

 

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