[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!