In 2014 Scrub Daddy Owner Aaron Krause walked into Shark Tank on a hope and a prayer. After creating what he thought was a better, more hygienic cleaning product, he had labored to get the product to take hold in the market. In the 18 months prior to pitching his company on Shark Tank he had struggled to reach $100,000 in revenue.
Aaron, who worked in manufacturing and the auto industry for over 20 years initially created the Scrub Daddy as a potentially better alternative for mechanics and blue collar workers to clean their hands of oil, grease and grime. He soon started testing his scrubbing pad on lawn furniture and kitchen dishes and realized the huge market potnetial the Scrub Daddy could have.
Aaron recalls that it all started when he was sitting at home with his wife watching an episode of Shark Tank. He says, “I remember thinking out loud that if I could get on this show I could do really well.” From that point on, Aaron’s wife pushed him to submit an application for the show, and months later he received a spot on an airing episode of Shark Tank.
Aaron was right in his assumption that the Sharks would love his product. Despite the low sales numbers and small growth prior to meeting coming on the show, the Sharks immediately saw the value in Aaron’s new cleaning product.
A bidding war between the Sharks ensured, and eventually Aaron chose to partner with Shark Lori Greiner because of her expertise in patents, household products and connections to QVC commercials.
Aaron accepted a deal from Lori of $200,000 in cash in exchange for 20% of Scrub Daddy. This valued Aaron’s company at $1 million dollars when Aaron had only accomplished $100,000 in sales.
Clearly Lori saw the giant opportunity and has since executed with Aaron very efficiently to grow Scrub Daddy to the company it is today.
To-date Scrub Daddy has sold over 15 million units in the 3 years Aaron and Lori have been working together, which has culminated in more than $70 million dollars in sales.
With Lori’s stake in the company still being 20%, that means she has turned a $200,000 investment into a valuation of $14 million in 3 short years. While that’s great for Lori, it’s been even better for Aaron.
Aaron reminisces on the blood, sweat and tears he poured into his company before making a deal with Lori and he can’t believe how far they have come in such a short time. He says, “I’m still working long hours every day to keep up with the demand for Scrub Daddy products, but I’m living my wildest dreams through it all. Three years ago I never imagined I’d be where I’m at today, and it’s all thanks to the Sharks.”