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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,
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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.
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DAYMOND JOHN: We've
heard that already.
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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.
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Do you think 25% of the equity
in your company is worth more
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or less than $0.10 a
unit in perpetuity?
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LORI GREINER: And he's all talk.
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Where is he going to take you?
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KEVIN O'LEARY: It
doesn't matter.
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LORI GREINER: It does matter.
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Connections are everything.
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KEVIN O'LEARY: You keep
25% of this business, which
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may sell 10 million of
these, and you keep it
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all for yourself.
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LORI GREINER: But you're
going to be keeping nothing
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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.
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Half a billion.
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LORI GREINER: But that
doesn't mean anything.
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What product is it?
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AARON KRAUSE: OK.
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I'd like to review--
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KEVIN O'LEARY: Wait a second.
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Let the sponge speak.
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And it's saying--
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LORI GREINER: Lori.
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KEVIN O'LEARY: --go with Kevin.
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ROBERT HERJAVEC: Aaron,
they're like children up here.
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It's awful.
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KEVIN O'LEARY: Let's recap.
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AARON KRAUSE: Let's
recap, please.
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ROBERT HERJAVEC: $150,000
for 25% from Daymond.
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Kevin?
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KEVIN O'LEARY: $100,000 for
no percent and a tiny tithe
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of $0.10.
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You keep all the equity.
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ROBERT HERJAVEC: Lori is
offering you $100,000 for 25%.
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LORI GREINER: I offered
$150,000 last time.
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ROBERT HERJAVEC: Whoa.
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Hang on.
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KEVIN O'LEARY: I
didn't hear that.
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DAYMOND JOHN: You
said a hundred, Lori.
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LORI GREINER: Oh, well,
I changed my mind.
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$150,000 for 25%.
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I'll make you a
millionaire within a year.
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DAYMOND JOHN: So mine
just went to $175,000.
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KEVIN O'LEARY: Whoa!
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AARON KRAUSE: He's
up to $175,000?
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DAYMOND JOHN: Yeah.
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LORI GREINER: Mine
just went to two.
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KEVIN O'LEARY: Whoa!
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[SUSPENSEFUL MUSIC]
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DAYMOND JOHN: The good news
is, I just made you an extra
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$100,000.
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I'm out.
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I wanted to stick it to her.
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KEVIN O'LEARY: Ouch.
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ROBERT HERJAVEC: Wow.
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KEVIN O'LEARY: I'll drop the
$0.50 down to $0.25 until
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the $100k is recovered.
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And then go to $0.10.
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AARON KRAUSE: Will
you go to $0.05?
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KEVIN O'LEARY: 7 and
1/2, it's a deal.
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ROBERT HERJAVEC: OK.
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Aaron, you've got two
offers on the table.
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What are you going to do?
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DAYMOND JOHN: You have to
make up your mind right now.
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LORI GREINER: You
don't see the benefit
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of having me as a partner.
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AARON KRAUSE: I never said that.
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LORI GREINER: You
need to tell me
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right now, whether you're going
with me or not, or I'm out.
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KEVIN O'LEARY: I'm here for you.
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AARON KRAUSE: I think
your deal is awesome.
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The equity amount is too much.
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Would you consider
coming down to 20?
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LORI GREINER: You
know what, I will.
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I'll go to 20.
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AARON KRAUSE: We got a deal.
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LORI GREINER: We got a deal.
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ROBERT HERJAVEC: All right.
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LORI GREINER: Good.
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MARC CUBAN: Way to go, Aaron!
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ROBERT HERJAVEC: Woo!
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LORI GREINER: Congratulations.
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AARON KRAUSE: Thanks, Lori.
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I'm so excited.
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KEVIN O'LEARY: You
are dead to me.
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And the sponge is dead.
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AARON KRAUSE: Thanks, guys.
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KEVIN O'LEARY: Scrub
Daddy, you suck!
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AARON KRAUSE: That is awesome.
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We got a deal.
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Lori, it's a dream come true.
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It's absolutely a
dream come true.
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DAYMOND JOHN: I don't care
how much money you have.
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I'm so satisfied to know
that you lost an extra 100.
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I know you'll get me back.
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LORI GREINER: It's going to
be a gangbuster, huge hit
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in infomercial.
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ROBERT HERJAVEC:
Good deal, Lori.
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LORI GREINER: It's a great deal.
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NARRATOR: In season
four, we watched
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Aaron Krause make
a deal with Lori
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Greiner for his innovative
sponge, the Scrub Daddy.
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LORI GREINER: I'll go to 20.
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AARON KRAUSE: We got a deal.
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NARRATOR: Let's see
what he's up to now.
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AARON KRAUSE: When I
pitched the sharks,
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we only had $100,000 in
retail sales and one product.
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And now, in 10 years, the
company has 273 employees.
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We have 160 products.
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And we're sold in
257,000 retail locations.
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Scrub Daddy is one of the
top five grossing companies
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in Shark Tank history,
doing over $670 million
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in retail sales.
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Before Shark Tank, there was
only one manufacturing facility,
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which was in Germany.
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And now, we moved
our manufacturing
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into Chattanooga,
Tennessee and New Jersey.
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We're made in the United States.
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We designed our new headquarters
to be totally solar powered.
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In fact, we have so
much excess electricity,
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we powered homes in the
surrounding neighborhood.
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LORI GREINER: Hey.
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AARON KRAUSE: Welcome.
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Welcome to Smile Central.
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In another strategic move,
we've developed a relationship
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with Unilever, the largest
producer of soap products
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in the world.
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They will be able
to expand our brand
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reach to countries, where people
have never heard of Scrub Daddy.
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KEWAL SANGHVI: We're extremely
excited to reach more consumers
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globally and make cleaning
a fun activity worldwide.
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LORI GREINER: Everybody that
comes into the Shark Tank
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dreams of global domination.
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And after signing
this partnership,
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you know what we just got?
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AARON AND LORI:
Global domination.
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AARON KRAUSE: Yeah.
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You got it.
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LORI GREINER: The last
10 years has taught me
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so much about Aaron as a
person, the creativity,
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the caring about the planet.
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He is the consummate
inventor, entrepreneur,
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and every investor's dream.
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It's our 10-year anniversary.
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AARON KRAUSE: It would
be difficult to put
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into words, what being on Shark
Tank has done for my life,
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and the hundreds of
employees that we have now.
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I go around the
globe and represent
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what Shark Tank means
to entrepreneurs
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and to the spirit of business.
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This smiley face sponge has
not just changed my life,
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but people all over the
world are smiling now
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as they use the
Scrub Daddy product.
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ALL: Scrub Daddy!
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