[MUSIC PLAYING]

NARRATOR: First
into the Shark Tank

is Aaron Krause, who
believes his product will

make everyday cleaning easier.

AARON KRAUSE: Hi, Sharks.

I'm Aaron Krause
from Philadelphia.

And I'm known as the
daddy of the Scrub

Daddy, the cutest but
most high tech scrubbing

tool in the world.

Today, I'm seeking a $100,000
investment in exchange for 10%

equity in the Scrub
Daddy business.

It's the greatest kitchen
scrubbing tool you ever used.

Because scrub that a
completely changes its texture

by just adjusting your
water temperature.

Let me show you how that works.

Here, I've got some hot water.

Here, I've got some cold water.

When I immerse the Scrub Daddy
in the hot and cold water,

a complete
transformation occurs.

Now, to show you that,
I've got 10 pounds weights.

Here, under the 10 pounds,
it's soft and compressible.

And that's like a sponge.

That's for your gentle
scrubbing applications.

But here, check that out.

It's hard and firm.

That's going to be for heavy
duty scrubbing applications.

We burned on brown and
gravy, tomato sauce, cheese,

and mustard onto a glass stove
top, and a stainless steel pan.

I'm going to take
the Scrub Daddy.

And you're going
to see it's just

going to attack right into
that burn on mess, scrubbing it

right off.

And remember, I'm
just using water here.

There's no chemicals at all.

And it's going to cut
right through that.

It won't scratch any
of your surfaces,

but it will clean
them beautifully.

Now, Scrub Daddy is not
really smiling anymore.

So I'm going to put them
here in the warm water.

And in just a couple
seconds, voila!

He's back to bright, fresh
and clean every time.

Sharks, that's not just
another smiling face.

You put it on your hand.

You can get to the bottom and
clean the sides in one move.

And that smiling mouth that
clean spoons, knives, forks,

spatulas, even
large serving spoons

on both sides at the same time.

Sharks, with your
help, Scrub Daddy

will be scrubbing and smiling
in every kitchen in the world.

MARC CUBAN: Woo.

DAYMOND JOHN: Wow.

LORI GREINER: Wow.

KEVIN O'LEARY: Scrub Daddy.

DAYMOND JOHN: I never
witnessed a live infomercial.

ROBERT HERJAVEC:
That was fantastic.

DAYMOND JOHN: That
was incredible.

Do you have samples?

AARON KRAUSE: I do.

LORI GREINER: Where are
you selling this now?

ROBERT HERJAVEC: Thank you.

AARON KRAUSE:
Well, currently, we

have it in five supermarkets
in the Philadelphia area.

We also sell it on our website.

I've been on QVC three times
over about three months.

ROBERT HERJAVEC:
And how'd it go?

AARON KRAUSE: Fantastic.

They've invited me
back over and over.

And every time I
go on, they reorder

30% more than the last time.

KEVIN O'LEARY: So
Scrub Daddy is humming.

ROBERT HERJAVEC: And what were
your total sales, QVC wholesale?

AARON KRAUSE: Just north of
$100,000, only in four months.

LORI GREINER: Do you
have a patent on this?

AARON KRAUSE: I
actually have a patent.

I have two more pending.

We have the trademark.

We have domain names.

KEVIN O'LEARY: OK, Aaron, what
do you need the $100,000 for?

AARON KRAUSE: What I
want to do is set up

an independent
manufacturing facility

with automated equipment.

KEVIN O'LEARY: Why do you need
to go into your own facility?

AARON KRAUSE: The
biggest problem

is I'm on their time schedule.

KEVIN O'LEARY: Are you saying
that you could be making more

revenue, if you were 24/7
making Scrub Daddies?

AARON KRAUSE: The
way QVC is going,

and we're just about to launch
in a whole bunch of stores,

we're going to
need that capacity.

And I have 18 years experience
running a manufacturing

plant that runs 24 hours a day.

I know exactly what
I need to do to make

this thing really efficient.

And I'm looking to get a
strategic partner who can open

this up into the retail stores.

I'm only in five supermarkets.

That's it.

LORI GREINER: What's your cost?

AARON KRAUSE: The cost
to make one is about $1.

DAYMOND JOHN: What are
you selling them for?

AARON KRAUSE: About $2.80.

DAYMOND JOHN: Wholesale?

AARON KRAUSE: Wholesale.

This needs to be in every
supermarket, drugstore,

Walgreens.

KEVIN O'LEARY:
That's so expensive.

Mrs. Slabinski goes to the store
and picks this off the shelf

and says, hey, it's a piece of
foam with a smiley face on it.

It costs $0.02 to make in China.

That's what she's thinking.

There's a brillo pad, which is
traditional product, is what,

20%--

AARON KRAUSE:
You're comparing it

to the lowest end
of the lowest end.

You take it up to
the highest end.

Talk about the ones like
Dobie pads or other pads out

there that are brand names.

ROBERT HERJAVEC:
Scrub Daddy, I think

you've done a great job today,
but I don't know if it's

going to work in retail.

I don't buy into that vision.

Just in the packaging,
I just don't

know if I see the difference.

AARON KRAUSE: Rob, it
doesn't sell on a shelf.

Correct.

But if you put it in display
shippers, which we built

these beautiful cardboard
display shippers,

and it communicates the
message to everyone.

DAYMOND JOHN: You're
talking end caps.

You're going to have to
pay for those things.

LORI GREINER: It's hard to get
them, even if you pay for them.

ROBERT HERJAVEC:
Great job today.

But I don't see
the retail vision.

I'm out.

AARON KRAUSE: I understand.

MARC CUBAN: I like the product.

I think you're
doing great things.

You're doing the
exact right way.

But when I hear QVC,
no disrespect to Lori,

when the company sales are
completely dependent on QVC,

that's a disaster
waiting to happen.

AARON KRAUSE: I've got 3,000
stores lined up right now.

We're going to be
in 3,000 stores.

MARC CUBAN: I understand.

Put aside QVC, you're still
a one-product company.

AARON KRAUSE: Not for long.

We've got Scrub Mommy.

We've got Scrub Baby
for doing baby bottles.

I've got a holder that
sits on your sink.

And it's got drains in the legs.

You don't understand
who you're dealing with.

MARC CUBAN: You're right.

I'm not doubting
the scrub market.

I'm not doubting you
are the Scrub Daddy.

But I'm not a scrub pimp.

So I'm out.

AARON KRAUSE: That hurts, Marc.

I wanted to work
with you so bad.

LORI GREINER: Marc, QVC does
over $8 billion in sales a year.

And I've done over
$500 million myself.

MARC CUBAN: Yes, you have.

And you rotate products
in and out of there.

And once those products
are out, they're out.

KEVIN O'LEARY: How
about this deal?

$100,000 for 50%?

[SUSPENSEFUL MUSIC]

[LAUGHS]

Let's start the bidding there.

AARON KRAUSE: All right.

You're out.

DAYMOND JOHN: I'm somebody
who can paint any picture.

And I think that Lori is a
vicious, backstabbing shark.

MARC CUBAN: That's all true.

DAYMOND JOHN: But sometimes
I love her as well,

because she is the QVC queen.

So I'm offering $50,000 for 15%,
if you can raise the rest from

Lori, and if she wants
to do business with me.

LORI GREINER: Well,
here's the thing.

You've heard me say before,
I can tell instantly

if it's a hero or a zero.

And I think what you've
got here is a hero.

No offense, Daymond.

I don't need you.

DAYMOND JOHN: You don't.

LORI GREINER: My offer
is $100,000 for 30%.

I will get you into
infomercial right away.

And I'm pretty confident
that we could get this

into all retail stores
across the country

within literally weeks.

[SUSPENSEFUL MUSIC]

KEVIN O'LEARY: I'll tell
you what I'll do for you.

I'll give you $100,000.

We'll never agree on what
percentage I should get.

I'm going to change
the model completely.

You're going to keep
the whole company.

But I want to be your financier.

I want you to give me $0.50
on every unit sold until I get

the $100k back.

Then it drops to
$0.10 in perpetuity.

MARC CUBAN: He just
wants to increase

your cost of goods sold by 50%.

Nothing, right?

KEVIN O'LEARY: Why give
up 30% of your company?

DAYMOND JOHN: Just to
sweeten the pot a little bit,

I'm going to give
you $150,000 for 25%.

ROBERT HERJAVEC: Whoa.

KEVIN O'LEARY: What
are you going to do?

LORI GREINER: I'm changing
my offer, actually.

$100,000, but for 25% The
experience, the connections,

everything that I have,
it will be successful.

I am partnered with
the best of them.

KEVIN O'LEARY: Why give up
any part of Scrub Daddy?

Think of the relationship
you have with this sponge.

[LAUGHS]

You're selling this thing out.

And it's going to cry.

It won't be happy anymore.

LORI GREINER: QVC, infomercial,
and into every single retailer

worldwide.

That's the power of
what we can do, just

by one infomercial spot.

I can get you there.

KEVIN O'LEARY: He
knows that already.

LORI GREINER: I'm not done.

DAYMOND JOHN: We've
heard that already.

We've heard that already.

KEVIN O'LEARY: I want the
answer to one question.

All right.

Do you think 25% of the equity
in your company is worth more

or less than $0.10 a
unit in perpetuity?

LORI GREINER: And he's all talk.

Where is he going to take you?

KEVIN O'LEARY: It
doesn't matter.

LORI GREINER: It does matter.

Connections are everything.

KEVIN O'LEARY: You keep
25% of this business, which

may sell 10 million of
these, and you keep it

all for yourself.

LORI GREINER: But you're
going to be keeping nothing

because he doesn't know
how to get this out.

KEVIN O'LEARY: You
haven't had any success.

You're an idiot.

You don't know what to do.

AARON KRAUSE: I know what to do.

KEVIN O'LEARY: Exactly.

DAYMOND JOHN: I just did a half
a billion deal with Walmart.

Half a billion.

LORI GREINER: But that
doesn't mean anything.

What product is it?

AARON KRAUSE: OK.

I'd like to review--

KEVIN O'LEARY: Wait a second.

Let the sponge speak.

And it's saying--

LORI GREINER: Lori.

KEVIN O'LEARY: --go with Kevin.

ROBERT HERJAVEC: Aaron,
they're like children up here.

It's awful.

KEVIN O'LEARY: Let's recap.

AARON KRAUSE: Let's
recap, please.

ROBERT HERJAVEC: $150,000
for 25% from Daymond.

Kevin?

KEVIN O'LEARY: $100,000 for
no percent and a tiny tithe

of $0.10.

You keep all the equity.

ROBERT HERJAVEC: Lori is
offering you $100,000 for 25%.

LORI GREINER: I offered
$150,000 last time.

ROBERT HERJAVEC: Whoa.

Hang on.

KEVIN O'LEARY: I
didn't hear that.

DAYMOND JOHN: You
said a hundred, Lori.

LORI GREINER: Oh, well,
I changed my mind.

$150,000 for 25%.

I'll make you a
millionaire within a year.

DAYMOND JOHN: So mine
just went to $175,000.

KEVIN O'LEARY: Whoa!

AARON KRAUSE: He's
up to $175,000?

DAYMOND JOHN: Yeah.

LORI GREINER: Mine
just went to two.

KEVIN O'LEARY: Whoa!

[SUSPENSEFUL MUSIC]

DAYMOND JOHN: The good news
is, I just made you an extra

$100,000.

I'm out.

I wanted to stick it to her.

KEVIN O'LEARY: Ouch.

ROBERT HERJAVEC: Wow.

KEVIN O'LEARY: I'll drop the
$0.50 down to $0.25 until

the $100k is recovered.

And then go to $0.10.

AARON KRAUSE: Will
you go to $0.05?

KEVIN O'LEARY: 7 and
1/2, it's a deal.

ROBERT HERJAVEC: OK.

Aaron, you've got two
offers on the table.

What are you going to do?

DAYMOND JOHN: You have to
make up your mind right now.

LORI GREINER: You
don't see the benefit

of having me as a partner.

AARON KRAUSE: I never said that.

LORI GREINER: You
need to tell me

right now, whether you're going
with me or not, or I'm out.

KEVIN O'LEARY: I'm here for you.

AARON KRAUSE: I think
your deal is awesome.

The equity amount is too much.

Would you consider
coming down to 20?

LORI GREINER: You
know what, I will.

I'll go to 20.

AARON KRAUSE: We got a deal.

LORI GREINER: We got a deal.

ROBERT HERJAVEC: All right.

LORI GREINER: Good.

MARC CUBAN: Way to go, Aaron!

ROBERT HERJAVEC: Woo!

LORI GREINER: Congratulations.

AARON KRAUSE: Thanks, Lori.

I'm so excited.

KEVIN O'LEARY: You
are dead to me.

And the sponge is dead.

AARON KRAUSE: Thanks, guys.

KEVIN O'LEARY: Scrub
Daddy, you suck!

AARON KRAUSE: That is awesome.

We got a deal.

Lori, it's a dream come true.

It's absolutely a
dream come true.

DAYMOND JOHN: I don't care
how much money you have.

I'm so satisfied to know
that you lost an extra 100.

I know you'll get me back.

LORI GREINER: It's going to
be a gangbuster, huge hit

in infomercial.

ROBERT HERJAVEC:
Good deal, Lori.

LORI GREINER: It's a great deal.

NARRATOR: In season
four, we watched

Aaron Krause make
a deal with Lori

Greiner for his innovative
sponge, the Scrub Daddy.

LORI GREINER: I'll go to 20.

AARON KRAUSE: We got a deal.

NARRATOR: Let's see
what he's up to now.

AARON KRAUSE: When I
pitched the sharks,

we only had $100,000 in
retail sales and one product.

And now, in 10 years, the
company has 273 employees.

We have 160 products.

And we're sold in
257,000 retail locations.

Scrub Daddy is one of the
top five grossing companies

in Shark Tank history,
doing over $670 million

in retail sales.

Before Shark Tank, there was
only one manufacturing facility,

which was in Germany.

And now, we moved
our manufacturing

into Chattanooga,
Tennessee and New Jersey.

We're made in the United States.

We designed our new headquarters
to be totally solar powered.

In fact, we have so
much excess electricity,

we powered homes in the
surrounding neighborhood.

LORI GREINER: Hey.

AARON KRAUSE: Welcome.

Welcome to Smile Central.

In another strategic move,
we've developed a relationship

with Unilever, the largest
producer of soap products

in the world.

They will be able
to expand our brand

reach to countries, where people
have never heard of Scrub Daddy.

KEWAL SANGHVI: We're extremely
excited to reach more consumers

globally and make cleaning
a fun activity worldwide.

LORI GREINER: Everybody that
comes into the Shark Tank

dreams of global domination.

And after signing
this partnership,

you know what we just got?

AARON AND LORI:
Global domination.

AARON KRAUSE: Yeah.

You got it.

LORI GREINER: The last
10 years has taught me

so much about Aaron as a
person, the creativity,

the caring about the planet.

He is the consummate
inventor, entrepreneur,

and every investor's dream.

It's our 10-year anniversary.

AARON KRAUSE: It would
be difficult to put

into words, what being on Shark
Tank has done for my life,

and the hundreds of
employees that we have now.

I go around the
globe and represent

what Shark Tank means
to entrepreneurs

and to the spirit of business.

This smiley face sponge has
not just changed my life,

but people all over the
world are smiling now

as they use the
Scrub Daddy product.

ALL: Scrub Daddy!