Scrub Daddy

by

Aaron Krause started selling Scrub Daddy with these cute looking Scrubs

  • Episode: Season 4, Episode 7
  • Air Date: October 25, 2012

Aaron has previous experience of manufacturing and selling buffing pads for car wash which he sold to 3M.

Aaron Started this company in the year 2012 and came to Shark tank of the same year for an ask of 10% Equity for $100K

Aaron Started his pitch with USP as the Size makes it convenient to clean all kind of Utensils .The round Shape can clean glasses flawlessly and the Smiley cut can be used to clean Spoon and Spatulas. The most important USP of scrub daddy is the texture if rinsed in hot water it will be soft and can be used for general scrubbing and when kept in cold water it becomes hard and can be used scrubbing tough Stains

Till the episode Aaron was selling the Scrub in 5 Super Markets in Philadelphia and through his own website.

In 4 Months Scrub Daddy has done a decent business of $100K

Shark’s asked why do you need the funds , Aaron responded he wants to Set up his own manufacturing facility and he carries a 18 Years of experience

Cost of Manufacturing for one piece is $1 and Selling in wholesale for $2.80

Shark’s Offer

  • Robert – was not so confident on the product so was out  
  • Mark Cuban –  Mark was not convinced with the Idea that if this product is sold only on QVC then it is going to be a Disaster there was a counter from Aaron that 3K Super markets are lined up but mark Kept out
  • Kevin – $100 K for 50 %, Aaron Immediately said no to it. Post Lori offer kevin revised his offer as $100k for Royalty of $50C / Unit until $100K is repaid  
  • Daymond John – Daymond Started by Saying that Lori is a backstabbing Shark but I will offer $50K for 15% and you can convince Lori for the rest .Daymond also revised the offer post lori and kevin’s revised offer  $150K for 25% ,there was a revision further to it $200K for 25%
  • Lori Greiner – Lori Started by saying what you have got is a Hero product and my offer is 100K for 30% Post Daymond offer Lori changed the offer to 25% for same amount ,Lori matched the offer post Daymond offer that is$200K for 25% to this Aaron requested if the Equity can be dropped to20% and Lori agreed for the Same .Deal was Sealed

Land Mark Events

  1. Riding the shark tank fame Scrub Daddy Sold 42K Units in 7 minutes on QVC next day
  2. From  $100K in 2012 Sales of Scrub Daddy has reached $220 Million by 2023 and this is one of the most successful business