A Bidding War Breaks Out During Scrub Daddy's Pitch | Shark Tank US | Shark Tank Global

Summary

Aaron Krause, the 'Daddy of Scrub Daddy,' introduces his innovative cleaning sponge that changes texture with water temperature, enhancing scrubbing efficiency. Seeking $100,000 for 10% equity, he impresses the Sharks with his product's performance and sales figures from QVC and local supermarkets. After a heated bidding war, he secures a deal with Lori Greiner for $150,000 in exchange for 20% equity, promising to make him a millionaire within a year.

Takeaways

• 🎤 Aaron Kraus introduces himself as the inventor of the 'Scrub Daddy', a high-tech kitchen cleaning tool.
• 🧽 The Scrub Daddy is designed to change its texture based on water temperature, with a soft form for general cleaning and a firm form for heavy-duty scrubbing.
• 🔥 Aaron demonstrates the product's effectiveness by cleaning burnt-on food from a glass stove top and a stainless steel pan using only water, no chemicals.
• 💰 Aaron is seeking a $100,000 investment for 10% equity in his business to establish an independent manufacturing facility with automated equipment.
• 📈 The Scrub Daddy has been successful on QVC, with increasing sales each time it is featured, indicating a strong market demand.
• 📝 Aaron holds a patent for the Scrub Daddy and has two more patents pending, along with trademarks and domain names, showing a focus on protecting intellectual property.
• 🛍️ The Scrub Daddy is currently available in five supermarkets in Philadelphia and online, with plans to expand to more stores.
• 💡 The cost to produce one Scrub Daddy is about a dollar, and it is sold wholesale for approximately $2.80, indicating a reasonable profit margin.
• 🤝 Aaron is looking for a strategic partner to help expand the product's reach into retail stores beyond the current limited availability.
• 👶 Aaron mentions other products in the pipeline, such as 'Scrub Mommy' and 'Scrub Baby', suggesting a product line expansion strategy.
• 💸 The sharks debate the product's retail viability, with concerns about its perceived value and the reliance on QVC sales, highlighting the importance of diversifying sales channels.

Q & A

Who is Aaron Krause and what is he known for?

Aaron Krause is from Philadelphia and is known as the 'Daddy' of the Scrub Daddy, a high-tech scrubbing tool.

What is Aaron Krause seeking from the sharks?

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

How does the Scrub Daddy's texture change with water temperature?

The Scrub Daddy's texture changes by adjusting the water temperature; it becomes soft and compressible in cold water, suitable for general scrubbing, and hard and firm in hot water, suitable for heavy-duty scrubbing.

What is unique about the Scrub Daddy's cleaning ability?

The Scrub Daddy can clean effectively using just water, without the need for chemicals, and it won't scratch surfaces while cleaning.

Where is the Scrub Daddy currently being sold?

At the time of the pitch, the Scrub Daddy is being sold in five supermarkets in the Philadelphia area and on their website.

What has been the response to the Scrub Daddy on QVC?

The Scrub Daddy has been very successful on QVC, with reorder quantities increasing each time it is featured.

Does Aaron Krause have a patent for the Scrub Daddy?

Yes, Aaron Krause has a patent for the Scrub Daddy and has two more patents pending.

Why does Aaron Krause want to set up an independent manufacturing facility?

Aaron Krause wants to set up an independent manufacturing facility to have control over production schedules and increase capacity to meet demand.

What is the cost to make one Scrub Daddy, and how much is it sold for wholesale?

The cost to make one Scrub Daddy is about a dollar, and it is sold wholesale for about two dollars and eighty cents.

What are the other products in the Scrub Daddy line mentioned in the script?

Other products mentioned include Scrub Mommy and Scrub Baby, which are designed for cleaning baby bottles, and a holder with drain legs for the sink.

What is the final deal Aaron Krause accepts in the scriipt?

Aaron Krause accepts a deal for $150,000 for 20% equity, with the understanding that the equity amount is too high and he would consider coming down to 20%.