Scrub Daddy Sponge
DEAL
EPISODE SUMMARY
🕓 Air Date: October 26, 2012
Asking For:
$100,000 for 10%
Investor:
Lori Greiner
Deal:
$200,000 for 20%
PRODUCT SUMMARY
Scrub Daddy is a versatile scrubbing tool that adjusts its texture based on water temperature, making cleaning easier and more effective.
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Background Story
Aaron Krause, the mastermind behind Scrub Daddy, brings forth not only a game-changing product but also a wealth of experience in manufacturing. Hailing from Philadelphia, Krause spent 18 years honing his expertise in managing manufacturing plants. The inspiration for Scrub Daddy struck him when he recognized the limitations of traditional cleaning sponges. With a keen eye for innovation, he patented the product and embarked on a journey to transform the cleaning experience.
His strategic move to patent the product and secure trademarks set the stage for Scrub Daddy’s remarkable journey. Krause’s vision and determination propelled the company forward, landing it spots in supermarkets and on QVC, where it gained rapid popularity and garnered sales exceeding $100,000 within just four months.
The Product
Scrub Daddy isn’t just your ordinary sponge; it’s a dynamic cleaning companion that adapts to your cleaning needs. When immersed in hot water, it becomes soft, ideal for delicate surfaces and gentle scrubbing.
Conversely, in cold water, it firms up, tackling tough stains with ease. Its unique texture ensures effective cleaning without leaving scratches behind, making it a favorite among homeowners and professional cleaners alike.
Sold at a wholesale price of approximately $2.80, Scrub Daddy is not only effective but also cost-efficient. Additionally, the company is expanding its product line to include Scrub Mommy and Scrub Baby, catering to a wider range of cleaning needs.
How It Went
The company’s position before Shark Tank
Scrub Daddy’s rapid success speaks volumes about its market potential and the effectiveness of its business strategy. With sales surpassing $100,000 in just four months, the company has made a significant impact in the cleaning industry. Its presence in five supermarkets in the Philadelphia area, coupled with successful appearances on QVC, underscores its growing popularity and consumer demand.
Krause’s decision to seek funding for an independent manufacturing facility demonstrates his commitment to scaling the business and meeting increasing demand. The company’s strategic positioning, coupled with its strong partnerships and innovative product offerings, positions it for further growth and expansion in the competitive cleaning market.
The Negotiations:
Following an impressive pitch, Krause received offers from several Sharks, each recognizing the potential of Scrub Daddy. However, it was Lori Greiner’s offer of $200,000 for 20% equity that ultimately caught his attention. Despite initial hesitation, Krause negotiated down from Greiner’s initial offer of 25%, highlighting his astute business acumen and commitment to securing the best deal for his company.
While other Sharks presented alternative proposals, Krause’s decision to partner with Greiner underscores her expertise and track record in product development and market expansion. With Greiner’s support, Scrub Daddy is poised for even greater success, solidifying its position as a leader in the cleaning industry.
