Scrub Daddy is a kitchen sponge created by Aaron Krause. It has one layer, which has medium characteristics compared to the hard and soft layers of a conventional two-layer dishwashing sponge. But that's not all the benefits of this amazing dishwashing detergent. A delightful design in the form of a smiling face (emoticon) simplifies the procedure for washing cylindrical objects.
Sponge Scrub Daddy is also known as one of the most successful projects in the history of the Shark Tank television reality show and a great example of a successful business. With the advent of the sponge on store shelves, in just a few months, it began to break one sales record after another.
Many owners of Scrub Daddy products note that washing dishes with them has become much more fun.
Offers from Sharks
Kevin offered 100 thousand dollars for 50% of the company.
Diamond offered 50 thousand dollars for a 15% Scrub Daddy, provided that Lori will participate in a joint purchase with him of the second half of the company.
The next offer comes from Lori in the amount of 100 thousand dollars for a 30% stake.
After that, Kevin changes his offer and asks for 50 cents per share, until he returns his money and 10 cents per share in the form of constant payments.
Diamond increases the amount to 150 thousand dollars for 25% of the company.
Lori promises to make Aaron a millionaire and offers the same 150 thousand dollars for a 25% stake.
Diamond reacts instantly, and the amount for this block of shares soars to 175 thousand dollars.
Lori announces the final price - 200 thousand dollars for a quarter of the company’s shares.
Kevin reduces his fee to 25 cents per share, until he returns the money spent, and 7.5 cents - in the form of constant payments.
Aaron chooses Lori’s offer, but offers to reduce the number of shares to 20% for the woman’s proposed amount of 200 thousand dollars.
Lori agrees.
Thus, Aaron achieved his goal. When he began to participate in the show, he expected to receive an offer in the form of 100 thousand dollars for 10% of his company.
Revenues of Lori and Aaron from Scrub Daddy
Scrub Daddy is one of the most successful deals in Shark Tank history. As of 2017, more than 10 million units of goods have been sold. Total revenue for this period amounted to more than $ 50 million. Given that Lori spent just $ 200,000 for 20% of the company, this amount looks stunning!
At the end of 2017, Fortune, an American business magazine, reported that Scrub Daddy had reached $ 75 million in revenue.
In the ninth season of Shark Tank, viewers of the show will learn that sponge revenue has reached $ 150 million. And that means Scrub Daddy is the biggest winner in Shark Tank history.
It seems that users experience an inexhaustible love for this product. On an Amazon online hypermarket site, he has 2,600 reviews with an average score of 4.6 - an impressive result! Many rave reviews on this product can be found on other sites, such as Bed Bath & Beyond home goods stores.
Features of Scrub Daddy
As noted above, the sponge has the shape of an emoticon. This means that it has two openings for the eyes and a slot for the mouth. They are convenient to use when washing dishes. Eyes will be useful when washing objects that have a cylindrical shape - glasses, glasses, carafes, two fingers easily slip through them, making it easy to move the sponge inside the washable item. The mouth slot is convenient to use when washing forks and spoons.
The sponge is made of a polymer with unique properties. The material changes its texture depending on the temperature of the water. For example, in cold water the sponge becomes stiffer, in hot water it becomes softer.
History of sponge
In 2007, detail technician Aaron Krause washed his car and accidentally scratched it. As a result, Aaron decided to develop his own line of polishing wipes. In 2008, he sold his business to 3M, an American diversified company. However, 3M wipes were not needed. As a result, they remained dusty in the production facilities of Aaron Krause. Over the next 5 years, they lay unclaimed until he decided to use them for cleaning garden furniture and washing dishes.
According to Krause, it was at that moment that he had an idea that in the future would bring him more than $ 100,000,000. In 2012, he patented 2 sponge designs and created Scrub Daddy Inc. Financing at that time was at the expense of own funds. Aaron decided to shift some of the funding to the Shark Tank. Sharks were interested in his proposal, as a result, businesswoman Lori Greiner acquired some of the shares.