WEBVTT

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[MUSIC PLAYING]

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NARRATOR: First
into the Shark Tank

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is Aaron Krause, who
believes his product will

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make everyday cleaning easier.

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AARON KRAUSE: Hi, Sharks.

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I'm Aaron Krause
from Philadelphia.

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And I'm known as the
daddy of the Scrub

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Daddy, the cutest but
most high tech scrubbing

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tool in the world.

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

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equity in the Scrub
Daddy business.

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

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Because scrub that a
completely changes its texture

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by just adjusting your
water temperature.

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Let me show you how that works.

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Here, I've got some hot water.

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Here, I've got some cold water.

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

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a complete
transformation occurs.

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

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

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And that's like a sponge.

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That's for your gentle
scrubbing applications.

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But here, check that out.

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It's hard and firm.

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

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

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

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I'm going to take
the Scrub Daddy.

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And you're going
to see it's just

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

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right off.

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And remember, I'm
just using water here.

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There's no chemicals at all.

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And it's going to cut
right through that.

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It won't scratch any
of your surfaces,

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but it will clean
them beautifully.

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Now, Scrub Daddy is not
really smiling anymore.

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

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And in just a couple
seconds, voila!

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

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Sharks, that's not just
another smiling face.

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You put it on your hand.

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

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

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spatulas, even
large serving spoons

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on both sides at the same time.

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Sharks, with your
help, Scrub Daddy

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

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MARC CUBAN: Woo.

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DAYMOND JOHN: Wow.

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LORI GREINER: Wow.

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KEVIN O'LEARY: Scrub Daddy.

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DAYMOND JOHN: I never
witnessed a live infomercial.

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ROBERT HERJAVEC:
That was fantastic.

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DAYMOND JOHN: That
was incredible.

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Do you have samples?

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AARON KRAUSE: I do.

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LORI GREINER: Where are
you selling this now?

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ROBERT HERJAVEC: Thank you.

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AARON KRAUSE:
Well, currently, we

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have it in five supermarkets
in the Philadelphia area.

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We also sell it on our website.

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

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ROBERT HERJAVEC:
And how'd it go?

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AARON KRAUSE: Fantastic.

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They've invited me
back over and over.

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And every time I
go on, they reorder

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30% more than the last time.

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KEVIN O'LEARY: So
Scrub Daddy is humming.

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

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

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LORI GREINER: Do you
have a patent on this?

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AARON KRAUSE: I
actually have a patent.

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I have two more pending.

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We have the trademark.

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We have domain names.

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

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AARON KRAUSE: What I
want to do is set up

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an independent
manufacturing facility

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with automated equipment.

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

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AARON KRAUSE: The
biggest problem

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is I'm on their time schedule.

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

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

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AARON KRAUSE: The
way QVC is going,

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

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we're going to
need that capacity.

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And I have 18 years experience
running a manufacturing

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plant that runs 24 hours a day.

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I know exactly what
I need to do to make

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this thing really efficient.

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

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this up into the retail stores.

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I'm only in five supermarkets.

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That's it.

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LORI GREINER: What's your cost?

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

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DAYMOND JOHN: What are
you selling them for?

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AARON KRAUSE: About $2.80.

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DAYMOND JOHN: Wholesale?

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AARON KRAUSE: Wholesale.

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This needs to be in every
supermarket, drugstore,

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Walgreens.

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KEVIN O'LEARY:
That's so expensive.

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

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

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It costs $0.02 to make in China.

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That's what she's thinking.

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

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20%--

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AARON KRAUSE:
You're comparing it

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to the lowest end
of the lowest end.

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You take it up to
the highest end.

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Talk about the ones like
Dobie pads or other pads out

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there that are brand names.

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ROBERT HERJAVEC:
Scrub Daddy, I think

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

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going to work in retail.

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I don't buy into that vision.

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Just in the packaging,
I just don't

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know if I see the difference.

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

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Correct.

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

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these beautiful cardboard
display shippers,

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and it communicates the
message to everyone.

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DAYMOND JOHN: You're
talking end caps.

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

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

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ROBERT HERJAVEC:
Great job today.

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But I don't see
the retail vision.

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I'm out.

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AARON KRAUSE: I understand.

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MARC CUBAN: I like the product.

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I think you're
doing great things.

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You're doing the
exact right way.

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But when I hear QVC,
no disrespect to Lori,

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when the company sales are
completely dependent on QVC,

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that's a disaster
waiting to happen.

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

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

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MARC CUBAN: I understand.

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

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AARON KRAUSE: Not for long.

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We've got Scrub Mommy.

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We've got Scrub Baby
for doing baby bottles.

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

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And it's got drains in the legs.

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

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MARC CUBAN: You're right.

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I'm not doubting
the scrub market.

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I'm not doubting you
are the Scrub Daddy.

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But I'm not a scrub pimp.

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So I'm out.

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AARON KRAUSE: That hurts, Marc.

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I wanted to work
with you so bad.

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

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And I've done over
$500 million myself.

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MARC CUBAN: Yes, you have.

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And you rotate products
in and out of there.

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

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KEVIN O'LEARY: How
about this deal?

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$100,000 for 50%?

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[SUSPENSEFUL MUSIC]

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[LAUGHS]

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Let's start the bidding there.

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AARON KRAUSE: All right.

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You're out.

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

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

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MARC CUBAN: That's all true.

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DAYMOND JOHN: But sometimes
I love her as well,

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because she is the QVC queen.

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

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

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LORI GREINER: Well,
here's the thing.

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

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if it's a hero or a zero.

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

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No offense, Daymond.

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I don't need you.

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DAYMOND JOHN: You don't.

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

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I will get you into
infomercial right away.

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And I'm pretty confident
that we could get this

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into all retail stores
across the country

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within literally weeks.

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[SUSPENSEFUL MUSIC]

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

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I'll give you $100,000.

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

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I'm going to change
the model completely.

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You're going to keep
the whole company.

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But I want to be your financier.

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

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the $100k back.

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Then it drops to
$0.10 in perpetuity.

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MARC CUBAN: He just
wants to increase

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your cost of goods sold by 50%.

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Nothing, right?

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

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

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

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ROBERT HERJAVEC: Whoa.

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

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

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

00:07:44.660 --> 00:07:47.720
everything that I have,
it will be successful.

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I am partnered with
the best of them.

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

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Think of the relationship
you have with this sponge.

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[LAUGHS]

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You're selling this thing out.

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And it's going to cry.

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It won't be happy anymore.

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

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worldwide.

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

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by one infomercial spot.

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I can get you there.

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KEVIN O'LEARY: He
knows that already.

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LORI GREINER: I'm not done.

00:08:11.280 --> 00:08:12.360
DAYMOND JOHN: We've
heard that already.

00:08:12.360 --> 00:08:13.680
We've heard that already.

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

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All right.

00:08:15.610 --> 00:08:20.760
Do you think 25% of the equity
in your company is worth more

00:08:20.760 --> 00:08:23.787
or less than $0.10 a
unit in perpetuity?

00:08:23.787 --> 00:08:25.120
LORI GREINER: And he's all talk.

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Where is he going to take you?

00:08:26.290 --> 00:08:27.300
KEVIN O'LEARY: It
doesn't matter.

00:08:27.300 --> 00:08:28.020
LORI GREINER: It does matter.

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Connections are everything.

00:08:29.535 --> 00:08:32.250
KEVIN O'LEARY: You keep
25% of this business, which

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may sell 10 million of
these, and you keep it

00:08:34.799 --> 00:08:35.632
all for yourself.

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

00:08:37.799 --> 00:08:39.400
because he doesn't know
how to get this out.

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

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You're an idiot.

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You don't know what to do.

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AARON KRAUSE: I know what to do.

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KEVIN O'LEARY: Exactly.

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

00:08:48.150 --> 00:08:49.555
Half a billion.

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LORI GREINER: But that
doesn't mean anything.

00:08:51.430 --> 00:08:52.300
What product is it?

00:08:52.300 --> 00:08:52.620
AARON KRAUSE: OK.

00:08:52.620 --> 00:08:53.670
I'd like to review--

00:08:53.670 --> 00:08:54.878
KEVIN O'LEARY: Wait a second.

00:08:54.878 --> 00:08:56.140
Let the sponge speak.

00:08:56.140 --> 00:08:57.388
And it's saying--

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LORI GREINER: Lori.

00:08:58.180 --> 00:08:59.760
KEVIN O'LEARY: --go with Kevin.

00:08:59.760 --> 00:09:01.270
ROBERT HERJAVEC: Aaron,
they're like children up here.

00:09:01.270 --> 00:09:01.930
It's awful.

00:09:01.930 --> 00:09:02.730
KEVIN O'LEARY: Let's recap.

00:09:02.730 --> 00:09:04.147
AARON KRAUSE: Let's
recap, please.

00:09:04.147 --> 00:09:07.770
ROBERT HERJAVEC: $150,000
for 25% from Daymond.

00:09:07.770 --> 00:09:08.730
Kevin?

00:09:08.730 --> 00:09:12.710
KEVIN O'LEARY: $100,000 for
no percent and a tiny tithe

00:09:12.710 --> 00:09:13.890
of $0.10.

00:09:13.890 --> 00:09:15.210
You keep all the equity.

00:09:15.210 --> 00:09:20.790
ROBERT HERJAVEC: Lori is
offering you $100,000 for 25%.

00:09:20.790 --> 00:09:22.890
LORI GREINER: I offered
$150,000 last time.

00:09:22.890 --> 00:09:23.240
ROBERT HERJAVEC: Whoa.

00:09:23.240 --> 00:09:23.720
Hang on.

00:09:23.720 --> 00:09:24.110
KEVIN O'LEARY: I
didn't hear that.

00:09:24.110 --> 00:09:24.890
DAYMOND JOHN: You
said a hundred, Lori.

00:09:24.890 --> 00:09:27.090
LORI GREINER: Oh, well,
I changed my mind.

00:09:27.090 --> 00:09:30.410
$150,000 for 25%.

00:09:30.410 --> 00:09:33.987
I'll make you a
millionaire within a year.

00:09:33.987 --> 00:09:35.820
DAYMOND JOHN: So mine
just went to $175,000.

00:09:35.820 --> 00:09:38.180
KEVIN O'LEARY: Whoa!

00:09:38.180 --> 00:09:39.600
AARON KRAUSE: He's
up to $175,000?

00:09:39.600 --> 00:09:40.790
DAYMOND JOHN: Yeah.

00:09:40.790 --> 00:09:42.590
LORI GREINER: Mine
just went to two.

00:09:42.590 --> 00:09:43.423
KEVIN O'LEARY: Whoa!

00:09:43.423 --> 00:09:45.910
[SUSPENSEFUL MUSIC]

00:09:45.910 --> 00:09:48.650


00:09:48.650 --> 00:09:52.400
DAYMOND JOHN: The good news
is, I just made you an extra

00:09:52.400 --> 00:09:54.380
$100,000.

00:09:54.380 --> 00:09:55.290
I'm out.

00:09:55.290 --> 00:09:58.182
I wanted to stick it to her.

00:09:58.182 --> 00:09:59.015
KEVIN O'LEARY: Ouch.

00:09:59.015 --> 00:10:03.020


00:10:03.020 --> 00:10:05.360
ROBERT HERJAVEC: Wow.

00:10:05.360 --> 00:10:08.600
KEVIN O'LEARY: I'll drop the
$0.50 down to $0.25 until

00:10:08.600 --> 00:10:10.200
the $100k is recovered.

00:10:10.200 --> 00:10:13.840
And then go to $0.10.

00:10:13.840 --> 00:10:17.470
AARON KRAUSE: Will
you go to $0.05?

00:10:17.470 --> 00:10:19.697
KEVIN O'LEARY: 7 and
1/2, it's a deal.

00:10:19.697 --> 00:10:20.530
ROBERT HERJAVEC: OK.

00:10:20.530 --> 00:10:24.340
Aaron, you've got two
offers on the table.

00:10:24.340 --> 00:10:26.260
What are you going to do?

00:10:26.260 --> 00:10:28.900
DAYMOND JOHN: You have to
make up your mind right now.

00:10:28.900 --> 00:10:30.700
LORI GREINER: You
don't see the benefit

00:10:30.700 --> 00:10:32.120
of having me as a partner.

00:10:32.120 --> 00:10:33.080
AARON KRAUSE: I never said that.

00:10:33.080 --> 00:10:34.455
LORI GREINER: You
need to tell me

00:10:34.455 --> 00:10:39.197
right now, whether you're going
with me or not, or I'm out.

00:10:39.197 --> 00:10:40.530
KEVIN O'LEARY: I'm here for you.

00:10:40.530 --> 00:10:43.210


00:10:43.210 --> 00:10:45.550
AARON KRAUSE: I think
your deal is awesome.

00:10:45.550 --> 00:10:47.448
The equity amount is too much.

00:10:47.448 --> 00:10:48.990
Would you consider
coming down to 20?

00:10:48.990 --> 00:10:55.360


00:10:55.360 --> 00:10:57.100
LORI GREINER: You
know what, I will.

00:10:57.100 --> 00:10:57.793
I'll go to 20.

00:10:57.793 --> 00:10:58.960
AARON KRAUSE: We got a deal.

00:10:58.960 --> 00:10:59.600
LORI GREINER: We got a deal.

00:10:59.600 --> 00:11:00.725
ROBERT HERJAVEC: All right.

00:11:00.725 --> 00:11:01.600
LORI GREINER: Good.

00:11:01.600 --> 00:11:02.870
MARC CUBAN: Way to go, Aaron!

00:11:02.870 --> 00:11:04.440
ROBERT HERJAVEC: Woo!

00:11:04.440 --> 00:11:05.690
LORI GREINER: Congratulations.

00:11:05.690 --> 00:11:06.815
AARON KRAUSE: Thanks, Lori.

00:11:06.815 --> 00:11:07.453
I'm so excited.

00:11:07.453 --> 00:11:08.870
KEVIN O'LEARY: You
are dead to me.

00:11:08.870 --> 00:11:10.570
And the sponge is dead.

00:11:10.570 --> 00:11:12.803
AARON KRAUSE: Thanks, guys.

00:11:12.803 --> 00:11:14.345
KEVIN O'LEARY: Scrub
Daddy, you suck!

00:11:14.345 --> 00:11:17.640


00:11:17.640 --> 00:11:18.890
AARON KRAUSE: That is awesome.

00:11:18.890 --> 00:11:19.930
We got a deal.

00:11:19.930 --> 00:11:22.180
Lori, it's a dream come true.

00:11:22.180 --> 00:11:23.800
It's absolutely a
dream come true.

00:11:23.800 --> 00:11:25.925
DAYMOND JOHN: I don't care
how much money you have.

00:11:25.925 --> 00:11:28.240
I'm so satisfied to know
that you lost an extra 100.

00:11:28.240 --> 00:11:29.323
I know you'll get me back.

00:11:29.323 --> 00:11:31.560
LORI GREINER: It's going to
be a gangbuster, huge hit

00:11:31.560 --> 00:11:32.495
in infomercial.

00:11:32.495 --> 00:11:33.870
ROBERT HERJAVEC:
Good deal, Lori.

00:11:33.870 --> 00:11:35.203
LORI GREINER: It's a great deal.

00:11:35.203 --> 00:11:38.580


00:11:38.580 --> 00:11:40.110
NARRATOR: In season
four, we watched

00:11:40.110 --> 00:11:41.880
Aaron Krause make
a deal with Lori

00:11:41.880 --> 00:11:44.413
Greiner for his innovative
sponge, the Scrub Daddy.

00:11:44.413 --> 00:11:45.580
LORI GREINER: I'll go to 20.

00:11:45.580 --> 00:11:46.180
AARON KRAUSE: We got a deal.

00:11:46.180 --> 00:11:48.160
NARRATOR: Let's see
what he's up to now.

00:11:48.160 --> 00:11:49.827
AARON KRAUSE: When I
pitched the sharks,

00:11:49.827 --> 00:11:53.200
we only had $100,000 in
retail sales and one product.

00:11:53.200 --> 00:11:59.950
And now, in 10 years, the
company has 273 employees.

00:11:59.950 --> 00:12:01.600
We have 160 products.

00:12:01.600 --> 00:12:05.200
And we're sold in
257,000 retail locations.

00:12:05.200 --> 00:12:07.800
Scrub Daddy is one of the
top five grossing companies

00:12:07.800 --> 00:12:12.210
in Shark Tank history,
doing over $670 million

00:12:12.210 --> 00:12:13.400
in retail sales.

00:12:13.400 --> 00:12:16.105
Before Shark Tank, there was
only one manufacturing facility,

00:12:16.105 --> 00:12:16.980
which was in Germany.

00:12:16.980 --> 00:12:18.680
And now, we moved
our manufacturing

00:12:18.680 --> 00:12:21.120
into Chattanooga,
Tennessee and New Jersey.

00:12:21.120 --> 00:12:22.820
We're made in the United States.

00:12:22.820 --> 00:12:26.220
We designed our new headquarters
to be totally solar powered.

00:12:26.220 --> 00:12:28.440
In fact, we have so
much excess electricity,

00:12:28.440 --> 00:12:31.020
we powered homes in the
surrounding neighborhood.

00:12:31.020 --> 00:12:31.950
LORI GREINER: Hey.

00:12:31.950 --> 00:12:32.960
AARON KRAUSE: Welcome.

00:12:32.960 --> 00:12:34.520
Welcome to Smile Central.

00:12:34.520 --> 00:12:37.580
In another strategic move,
we've developed a relationship

00:12:37.580 --> 00:12:40.910
with Unilever, the largest
producer of soap products

00:12:40.910 --> 00:12:41.820
in the world.

00:12:41.820 --> 00:12:43.850
They will be able
to expand our brand

00:12:43.850 --> 00:12:46.950
reach to countries, where people
have never heard of Scrub Daddy.

00:12:46.950 --> 00:12:49.533
KEWAL SANGHVI: We're extremely
excited to reach more consumers

00:12:49.533 --> 00:12:52.080
globally and make cleaning
a fun activity worldwide.

00:12:52.080 --> 00:12:54.330
LORI GREINER: Everybody that
comes into the Shark Tank

00:12:54.330 --> 00:12:55.742
dreams of global domination.

00:12:55.742 --> 00:12:57.200
And after signing
this partnership,

00:12:57.200 --> 00:12:58.760
you know what we just got?

00:12:58.760 --> 00:13:00.528
AARON AND LORI:
Global domination.

00:13:00.528 --> 00:13:01.320
AARON KRAUSE: Yeah.

00:13:01.320 --> 00:13:02.630
You got it.

00:13:02.630 --> 00:13:04.850
LORI GREINER: The last
10 years has taught me

00:13:04.850 --> 00:13:08.430
so much about Aaron as a
person, the creativity,

00:13:08.430 --> 00:13:09.960
the caring about the planet.

00:13:09.960 --> 00:13:12.830
He is the consummate
inventor, entrepreneur,

00:13:12.830 --> 00:13:15.200
and every investor's dream.

00:13:15.200 --> 00:13:16.860
It's our 10-year anniversary.

00:13:16.860 --> 00:13:18.610
AARON KRAUSE: It would
be difficult to put

00:13:18.610 --> 00:13:22.730
into words, what being on Shark
Tank has done for my life,

00:13:22.730 --> 00:13:25.160
and the hundreds of
employees that we have now.

00:13:25.160 --> 00:13:28.090
I go around the
globe and represent

00:13:28.090 --> 00:13:30.490
what Shark Tank means
to entrepreneurs

00:13:30.490 --> 00:13:32.450
and to the spirit of business.

00:13:32.450 --> 00:13:35.930
This smiley face sponge has
not just changed my life,

00:13:35.930 --> 00:13:38.950
but people all over the
world are smiling now

00:13:38.950 --> 00:13:42.310
as they use the
Scrub Daddy product.

00:13:42.310 --> 00:13:44.460
ALL: Scrub Daddy!

00:13:44.460 --> 00:14:16.000