Aaron Krause started Scrub Daddy, a company that makes cleaning tools. It has been called one of the most successful businesses to appear on Shark Tank’s show. Its best-selling product is a smiley-faced polymer sponge that can be used for many different things. Scrub Daddy is expected to make more than $100 million this year and will be worth $150 million by 2022.
About the Founder
Aaron Krause is the owner of Scrub Daddy. He was born in Wynnewood, Pennsylvania, to two doctors. He started making things when he was young and went to Syracuse University to study psychology.
After he graduated, he started a business washing cars. This is where he first learned about how different cleaning materials work. He didn’t like the buffing pads on the market then, so he made his own.
He got a patent on his buffing pads, which became the main focus of his business. Krause also made the tools he needed to make his new product and sold his car wash business soon after.
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Establishing Scrub Daddy
The aspiring businessman made his cleaning products for the machines he used to make things. He got a foam made just for him in Germany. He cut it into a circle with two holes and ridges so he could hold it better. This is how the smiley face sponge came to be.
In 2008, 3M, the biggest company in the world that makes things, bought Krause’s company that made buffing pads. But the famous sponge he was known for wasn’t part of the deal. Because of this,
After three years, he found out that his sponge could get harder in cold water and softer in hot water. Scrub Daddy was released to the public in 2012, and Aaron showed it off on the home shopping network QVC.
Shark Tank Appearance
Krause’s time at QVC was very successful, as he often sold out of all of his units. But he knew that his new business wasn’t living up to its full potential. After he and his wife watched Shark Tank, he thought it would be smart to get a strategic partner to help him move into retail. During the pitch, he was only in five grocery stores.
In season four, he showed up and asked for $100,000 for a 10% share of his company. Aaron gave a very lively presentation that caught the Sharks’ attention. Kevin O’Leary started the bidding war by offering $100,000 for 50% of the company, but Aaron said no right away.
Daymond John wanted to make a deal with Lori Greiner, known as the “Queen of QVC.” Lori, on the other hand, wanted to go by herself since she didn’t need Daymond. In the end, Lori offered $200,000 for 20%, which Aaron Krause gladly took.
After Shark Tank
When Krause’s Shark Tank episode aired, he sold 42,000 sponges in less than seven minutes the next day. Lori Greiner also helped get the brand of cleaning tools into all the big stores in the US.
In January 2017, Scrub Daddy made more than $100 million in sales. By October 2019, the company had made $209 million in total sales. In 2021, sales grew by 80% from the previous year, and in 2022, the company will make more than $100 million. Based on this prediction, the total amount of money made should be more than $300 million by the end of the year.
They now sell more than 20 different things. To keep up with demand, he also increased production by doubling the size of the factory’s headquarters, which is now 80,000 square feet. Aaron and his team use TikTok to spread the word about their products.
Scrub Daddy’s Net Worth
Scrub Daddy is now considered the third-largest sponge company in the United States. According to estimates, Aaron Krause’s net worth is now $70 million, and Scrub Daddy’s Net worth is about $150 million.
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