Scrub Daddy is one of the most successful businesses that appeared on the popular TV show Shark Tank. Aaron Krause is the founder of this very interesting cleaning product company. He is behind the multi-purpose polymer sponge with a smiley face that became a bestselling product all across the US. Scrub Daddy’s net worth as of 2023 is $250 million, while its owner, Aaron Krause has a net worth of $70 million. The company is making over $100 million in revenue each year.
Who is Aaron Krause?
The man behind Scrub Daddy, Aaron Krause, was born in Wynnewood, Pennsylvania, in a family of doctors. He was known to work on all kinds of inventions even from an early age and attended Syracuse University, where he studied psychology.
As soon as he graduated, he launched a car washing company. This is where he got to understand the nature and issues of different cleaning supplies. Noticing that the buffing pads available at that time were pretty horrible, he thought of the invention that would make him a millionaire.
This became his new business focus and he rushed to patent the new buffing pad idea. He went on to sell his car washing business but not before making all the necessary devices for the new creation.
How Much is Scrub Daddy Worth?
Although many people rush to sell businesses that blow up, Krause decided to remain a pivotal part of the company that made him famous. To insure that the company will continue to bloom, the inventor kept a strong hands-on approach.
He even went as far as to say that the fair treatment of employees along with his dedication and deep involvement were the bases of his success. He further explained in an interview that this approach extends to his close family, his kids still having mandatory chores as a way of earning the money they receive from their parents.
And Krause’s methods really do seem to work. The company behind Scrub Daddy managed to sell over 25 million sponges and makes him over $100 million yearly, Scrub Daddy’s net worth hitting $250 million, while Krause’s net worth rose to over $70 million. Krause often talked about selling the Scrub Daddy company sometime in the future, for the moment he is still the most important cleaner dad.
Establishing Scrub Daddy
The cleaning products were developed by the aspiring entrepreneur himself. The foam was ordered tailor-made from Germany. He initially made two holes and a circle in it to give it a better grip for holding. This was how the smiley face sponge was born.
Krause’s buffing pad company was sold in 2008 to 3M, which is the biggest manufacturing firm worldwide but Krause made sure not to include the popular sponge in the deal. As a result, he kept the rights to make and sell the product that made him a millionaire.
Three years later, he discovered that his sponge had the ability to harden in cold water and soften in hot water. In 2012, Scrub Daddy was officially launched, and Aaron presented it on the home shopping network QVC.
Shark Tank Appearance
Krause got an initial stint with QVC that proved to be a great decision, helping him sell out all of his units more than once. Even so, he still believed the startup was underperforming and had higher hopes for this very useful sponge. He came up with the idea of bringing a strategist partner into his business to expand into the retail world after watching Shark Tank one night with his wife. When he threw his pitch at the sharks, his product was only available in five supermarkets.
He was part of season four of Shark Tank, looking to get $100,000 and willing to give out a 10% stake in his business. Aaron was able to catch the attention and interest of the audience with a very energetic presentation. Kevin O’Leary was the first to bid, offering the needed $100,000, but looking to get 50% of the business, which Aaron promptly declined.
Although Daymond John proposed a deal split to Lori Greiner, the Queen of QVC decided to go solo, as she considered she had no need for help from Daymond. In the end, Aaron Krause and Lori Greiner agreed on a $200,000 deal for 20% of the business.
After Shark Tank
Just one day after the Shark Tank episode in which Krause appeared with the pitch, the company sold over 42,000 sponges in just under seven minutes. The business also received an impressive boost from Lori Greiner’s help, getting the cleaning tool into most major retail stores in the US.
Scrub Daddy managed to get over $100 million in revenue in January 2017 alone, hitting lifetime sales of over $209 million by October 2019. And the growth didn’t stop there. In 2021 Scrub daddy saw revenue growth of 80% year over year. 2022 was an even better year for the company, doing over $100 million in sales. Currently, the lifetime sales have gone over the $700 million mark.
They even expanded and currently offer over 20 products under the same brand. They even had to ramp up production and expand the manufacturing quarters to 80,000 square feet to meet the almost overwhelming demand. Aaron’s company currently uses TikTok as one of the main advertising channels for their products, with each video becoming viral almost on the spot.
Scrub Daddy is currently known as the third-biggest sponge provider across the US. This made Aaron Krause’s net worth skyrocket to $70 million, while Scrub Daddy’s net worth overpassed $250 million. Shark Tank did a follow-up episode on January 28, 2023, in which the company revealed a new deal signed with Unilever, that would enable them to become a name worldwide and double their sales in the coming years.
- How Much Does a Wheaten Terrier Cost? - November 27, 2023
- How Much Does a Rumson Country Club Membership Cost? - November 27, 2023
- How Much Does It Cost To Return A Uhaul At A Different Location? - November 27, 2023