After Aaron Krause’s pitch on the reality television series Shark Tank, Scrub Daddy’s net worth grew in leaps and bounds, and today, it is said to be a whopping $200 million. The CEO of the scrubber firm achieved this financial milestone through inventions, Entrepreneurial endeavors, and mostly through business expansions.
Before he decided to go to the reality television show to pitch his company and present his “ask”, Aaron Krause was recording a minor success with his product. However, getting an investor of Lori Greiner’s caliber to back his brand resulted in exponential growth that earned him pride of place as the most successful company on Shark Tank.
How Much is Aaron Krause Worth?
According to recent reports, Aaron Krause is worth $70 million. The Chief Executive Officer of Scrub Daddy has been earning his keep by establishing several small businesses before his latest venture turned around his financial standing.
Aaron is now listed among the most successful protégées to ever appear on the set of the Shark Tank reality TV show.
Aaron Krause’s Net Worth Compared to the Current Worth of His Company
While the last estimation of Aaron Krause’s bottom line pegged it at $70 million, his company, Shark Daddy, is worth much more than that. As of 2023, the smiley-face sponge product has accumulated a whopping $200 million and still counting.
The difference of $130 million between the two entities is massive, but the fact remains that they are correlated. Aaron’s bottom line will only grow if his scrubber company does well, thus, Scrub Daddy needs to stay ahead at all times.
There were recent analyses that claim the sponge company spends $1 to manufacture each sponge, and since it has amassed over 150 million in retail sales so far, its total worth should not exceed $250 million.
From what is obvious, the sponge company has come a long way since its appearance on Shark Tank. When Aaron took his business prospect to the reality TV show Scrub Daddy was a moderate success, barely worth one million, but his participation in the show turned out to be a life-changing venture.
Aaron Krause’s Net Worth Sources
The major source of Aaron Krause’s net worth is his entrepreneurial venture in several businesses, especially the smiley-faced sponge company called Scrub Daddy. The records listed him as an entrepreneur, inventor, and Chief Executive Officer of Scrub Daddy
Even before he launched his sponge company, Aaron was still making ends meet through his car washing business and other ventures.
Aaron’s Early Career Pursuit
Born and bought up in Wynnewood, Pennsylvania, Aaron laid a solid foundation for his business by studying psychology. It was obviously his profound understanding and appreciation of the human psyche that gave him the needed edge to create a unique product that succeeded in stealing the hearts of million and a share of their wallets.
Always an inventor, Aaron Krause started small by launching his car washing business in the early part of the 2000s. However, he found the available buffing and polishing pads so dissatisfying that he had to manufacture his own. The Syracuse University alum managed the car-washing business till 2008, when he decided to sell it to 3M. What the company purchased was the rights to his polishing pads but declined to buy the sponges developed by Krause.
The scrap sponges, which Aaron majorly used for the removal of machine grime and grease from his fingers, were packed up in a box and marked “scrap”. It happened that the Scrub Daddy CEO used the sponges to clean his garden furniture, and this activity led him to discover that the product has the capacity to change texture depending on the temperature it meets in water. This was what gave birth to the company we all know today as Scrub Daddy.
Reports also captured that Aaron had a small company called Dedication to Detail, Inc. which he launched in 1993 and he opened a second company named, Ion Tech Wear.
Aaron Krause’s Household Scrubber Company, Scrub Daddy
Scrub Daddy is a popular household cleaning product that went viral in 2008 and proceeded to take the market by storm. Aaron Krause leveraged a special polymer in making his smiley-faced sponge, which gave it that quality of changing texture with a change in water temperature. The sponge goes soft in warm water and becomes firm when it comes into contact with cold water.
Despite the fact that it was stuffed into a box by 3M and labeled “scrap when the company bought Aaron’s car-washing business, it hit the market with a big splash. During its first year of sales, the multi-textured sponge evolved into an international multimillion-dollar firm accruing an estimated bottom line of over $15 million.
Angelo discovering Scrub Daddy ???? pic.twitter.com/DFhZW3g1Wd
— SPORTSRADIO 94WIP (@SportsRadioWIP) December 14, 2021
Currently, Scrub Daddy can be accessed from online stores, top-notch supermarkets, and superstores. In addition to these, the company launched its own website where the product is sold, and other sites like Walmart and Amazon also markets Scrub Daddy products. Other retail partners include ACE Hardware, Basha’s, Acme, Bi-Mart, Big Y, and many more. Here are variations of the smiley-faced sponge.
- A Scour Daddy
- A Sponge Daddy
- A PowerPaste
- The Scrub Daddy (made in diverse designs and colors)
Scrub Daddy became Successful after Aaron Pitched it at the Shark Tank Reality TV Show
After four months of mildly successful business operations, the founder of Scrub Daddy, Aaron Krause, decided to take his craft to the trendy stage of Shark Tank US. He walked in on episode 7 of the show’s fourth season, and this coincided with legendary Sir Richard Branson’s guest appearance on Shark Tank.
Aaron was in high spirits when he started his pitch, and his manner of presentation was described as highly energetic. The Chief Executive Officer of Scrub Daddy took up his merchandise to the point that it was jokingly dubbed a “live infomercial” by Daymond Garfield John. In fact, several other Sharks dismissed Aaron’s presentation as a silly gimmick because of his electrifying presentation laced with a fun attitude.
Demonstrating his product’s unique propositions and applications, Aaron used the sponge to clean tainted surfaces. He was quite zealous and entertaining in presenting all the scrubber’s characteristics. He let the sharks know that he already has five supermarkets selling his scrubber, and he was in talks with many more. This is the reason he needed to have an independent manufacturing unit. At the end of his presentation, the CEO quoted an “ask” of $100,000 to pay 10 percent of his proceeds.
Despite the dismissal of his presentation by many sharks, a few others became interested in making offers. Kevin O’Leary’s offer was $100,000 for 50 cents on each unit sold until he recoups his investment and later 10 cents per unit, which would last forever.
While Aaron Krause was considering Kevin’s offer, Lori Greiner and Daymond Garfield John locked horns in a bidding war, with both sharks offering two times Aaron’s ask for 25% of the company. Daymond eventually backed out, claiming he made Greiner pay more for what she wanted. Lori’s offer was $200k for 20 percent, and according to reports, the wealth of experience she has accumulated in QVC was key in Scrub Daddy’s success in the latter years.
With Greiner’s contribution, Aaron expanded his retail distribution of the scrubber from five outlets to hundreds of supermarkets and retail stores across the United States. Lori is obviously reaping her rewards as the female shark is constantly smiling to the bank with the proceeds and has made over $9 million from her investment in Scrub Daddy.
According to the Chief Executive Officer of the scrubber company, the relationship he later built with Lori transcended professional bounds, developing into a solid friendship.
How Aaron Krause Grew Scrub Daddy with Lori’s Investment
Lori Greiner’s funds weren’t just an investment in Aaron’s hands; it also came with an abundance of good luck. The day following the CEO’s pitch episode, the household scrubber sold about 42,000 units of QVC.
Over the ensuing years, Lori’s investment was turned over multiple times, and her mentorship and the CEO’s ingenuity and drive were instrumental to their recorded success. Scrub Daddy went from a Philadelphia-based grassroots firm to become an international sensation within a short while, and today, it has earned a place among the globe’s fastest-growing brands. Its sales recently hit the $200 million mark.
With the continuous expansion of its product offering and the scrubber became the United States’ third-largest sponge provider
In 2014 Shark Tank named the scrubber its most successful product – a title it still holds to date. The company also featured in the reality television special episode, The Greatest Money Maker, after it recorded a whopping $268 million in sales. Another company on Shark Tank that achieved the same feat is Bombas.
Aaron Krause Made Subsequent Appearances on Shark Tank
As a Shark Tank protégée, Aaron Krause made subsequent appearances on the set of the reality television show to furnish fans with updates.
The next time Scrub Daddy’s Chief Executive Officer was spotted on the show was during episode 423. As of then, the scrubber company raked in over $20 million in sales which was quite impressive.
Aaron was next seen in episode 201 of Beyond the Shark Tank. The reports he came with revealed that his firm recorded sales of $75 million by January 2016 as the firm grew in leaps and bounds.
His last update was the juiciest. In episode 907, the Shark Tank protégée reported over $150 million in sales. With that said, Scrub Daddy remains a thriving concern, and it goes without saying that the subsequent updates are likely to show astronomical growth.
Aaron has Embarked on some Successful Partnerships Lately
January 2022 saw Scrub Daddy join efforts with Cif (Unilever’s household cleaning brand) in creating a market for their co-branded products and have been jointly involved in its distribution. This partnership represents a significant milestone in the scrubber company’s global growth and recognition.
Aaron also did another partnership with SIMON’s Heart. Through their collaboration, they launched a range of heart-shaped sponges. A good cut of the proceeds from this sale will go into philanthropic causes, and notable among them is creating awareness about cardiac arrests in kids and its preventive measure.
The Company has been involved in Lucrative Business Expansion
Since Scrub Daddy became a tremendous success in the market, the company’s Chief Executive Officer has not been resting on his laurels. Aaron has been busy behind the scene breaking new ground. As of August 2022, users of the scrubber sponge noticed several Halloween-themed sponges, Aaron launched the new range sporting shapes such as mythical figures, ghosts, and many more.
His Halloween-themed range of sponges is just a small part of his business expansion. Scrub Daddy company has since boosted its product lineup by launching others like its sponge caddies, scouring pads, Microfiber cloths, erasers, Scrub Daisy Dishwand System (12th product), car buffing, and polishing pads, and many more. These products can be found all over the United States and it has become really hard to find a retail outlet that doesn’t display them on their shelves.
During the Corona Virus pandemic, the revenue generated from the scrubber company’s product skyrocket by over 300 percent. The firm also had to devise fast and efficient ways of adapting to increased demand which added extra digits to their bank balance.
Though the scrubber company is doing exceptionally well in generating revenue, Krause has announced that he is hatching bigger plans for the future. There are speculations that the Chief Executive Officer of Scrub Daddy company may be getting ready to launch additional four companies. Though the details are still under wraps
The Scrub Daddy CEO has Recorded Several Appearances on the Sets of Different TV Shows
After it became a household name in the whole of the United States, Scrub Daddy hit another level of fame after the CEO Aaron Krause started appearing in television shows. He was spotted on the hit TV show, Good Morning America, Krause has graced the set of The View, People’s Magazine (2018 edition), The Greatest Money Maker show, and several others. As he grows in leaps and bounds, Krause is expected to record other TV show appearances in the nearest future.
All his TV show appearances contributed to giving Scrub Daddy a nudge into the limelight. Many end users now talk and tweet about the scrubber product on various social media platforms.
The way that scrub daddy just came into my life and changed it for the better…
— Jon Kung (@ChefJonKung) December 7, 2021
Are there Plans to Selloff Scrub Daddy?
According to The Philadelphia Business Journal, Krause has plans to sell off Scrub Daddy, and the offer he is looking for is said to be times ten of the scrubber company’s earnings.
It is glaring that securing a deal of that magnitude could be quite difficult given the fact that companies just recovered from the effects of the Corona Virus pandemic and may not be interested in expansion at the moment.
However, the talk about Aaron’s plans to sell the scrubber company is mere speculation, the firm’s Chief Executive Officer has not publicly confirmed his plans to do so but we will just have to rely on time to tell.
