Shark Tank US | Scrub Daddy Makes The Sharks Go CRAZY!

Summary

Aaron Krauss pitches Scrub Daddy, a revolutionary cleaning tool that changes texture based on water temperature, on Shark Tank. He seeks $100,000 for 10% equity. Demonstrating Scrub Daddy’s versatility and success on QVC, Krauss explains the need for manufacturing expansion. While some sharks are skeptical of its retail potential, Lori Greiner offers $150,000 for 25% equity, eventually agreeing to 20%. Kevin O'Leary also proposes a financing deal, but Krauss ultimately chooses Lori, aiming to leverage her QVC expertise for massive retail success.

Takeaways

• 😀 Aaron Krauss pitches Scrub Daddy, a high-tech scrubbing tool, seeking $100,000 for 10% equity.
• 💧 Scrub Daddy changes texture with water temperature: soft in hot water for gentle cleaning, and firm in cold water for tough scrubbing.
• 🍴 The sponge's smiley face is designed to clean utensils effectively, and it doesn't scratch surfaces.
• 🏪 Currently sold in 5 supermarkets and on QVC, where it has done over $100,000 in sales in 4 months.
• 📈 Aaron's goal is to set up an independent manufacturing facility to meet growing demand, especially as he is about to expand into more stores.
• 💵 It costs $1 to manufacture, and he sells it wholesale for $2.80, with plans to expand into major retailers.
• 🛑 Some sharks express concerns about the product's retail viability and dependency on QVC, leading them to decline.
• 👑 Lori Greiner, the 'QVC Queen,' sees potential and offers $100,000 for 30%, which Aaron negotiates down to 20%.
• 📊 Damon and Kevin also make competing offers, with Kevin proposing a royalty model, but Aaron ultimately accepts Lori's deal.
• 🎉 The deal ends with Lori offering $150,000 for 20%, promising to make Scrub Daddy a huge hit through infomercials and retail partnerships.

Q & A

What is the product being pitched in the Shark Tank episode?

The product is called Scrub Daddy, a high-tech scrubbing tool that changes texture based on water temperature for various cleaning applications.

What investment is Aaron Krauss seeking from the Sharks?

Aaron Krauss is seeking a $100,000 investment in exchange for 10% equity in the Scrub Daddy business.

How does Scrub Daddy change its texture, and what are the benefits?

Scrub Daddy becomes soft and compressible in warm water, ideal for general scrubbing, and firm in cold water for heavy-duty scrubbing. It provides versatility for different cleaning tasks without scratching surfaces.

What are the current sales and distribution channels for Scrub Daddy?

Scrub Daddy is currently sold in five supermarkets in Philadelphia and has been featured on QVC, where it generated over $100,000 in sales within four months.

What are Aaron Krauss' future plans for the business?

Aaron plans to set up an independent manufacturing facility with automated equipment to increase production capacity and meet the growing demand from QVC and retail stores.

What are the production costs and pricing of Scrub Daddy?

The cost to manufacture each Scrub Daddy is about $1, and it is sold wholesale for around $2.80.

What concerns did the Sharks express about the product?

Some Sharks, like Mark Cuban and Robert Herjavec, expressed concerns about Scrub Daddy's scalability in retail, its dependence on QVC, and the difficulty of competing with cheaper cleaning products on store shelves.

What offers did the Sharks make to Aaron Krauss?

Several Sharks made offers: Kevin O'Leary proposed a royalty deal with no equity, Lori Greiner offered $100,000 for 30% and later adjusted to 25%, Damon John offered $150,000 for 25%, and the offers escalated during negotiations.

What was Aaron Krauss' final decision regarding the offers?

Aaron Krauss accepted Lori Greiner's offer of $150,000 for 20% equity, recognizing her expertise in QVC and retail expansion.

How did Aaron Krauss react to securing the deal with Lori Greiner?

Aaron was thrilled with the deal, calling it a dream come true and expressing confidence that Lori's involvement would lead to major success in infomercials and retail.