The story of Scrub Daddy is one of innovation, intuition and sheer luck. Aaron Krause the man behind the smiley-face cleaning-sponge is a natural when it comes to inventing. If he faces a problem, invents a solution. The discovery of Scrub Daddy was a sweet accident. We’ll talk about all of that and how much the company has actually made in the 10 years since its launch in 2012.
How much is Scrub Daddy Worth?
Scrub Daddy’s net worth is north of $250 million in 2023. While the founder and CEO, Aaron Krause has a net worth of $70 million. The company has done extremely well for itself in the last 10 years. Having been launched as a one-person business, Scrub Daddy, today has 273 employees. The company makes 160 products that are sold in 257,000 locations. So far, they have made $670 million in retail sales.
Scrub Daddy is one of America’s most favorite household cleaning brands and it has been nipping at the heels of the largest players in the market. But how did this thing grow so big? Let’s learn about the man behind Scrub Daddy, Aaron Krause, and his story of building a multi-million dollar company.
Who is Aaron Krause?
Aaron Krause is an inventor and businessman who is the founder, president, and CEO of Scrub Daddy. You may recognize him from his appearance in Shark Tank in 2012, the same year Scrub Daddy was launched. Krause has a bachelor’s degree in Psychology from Syracuse University.
Scrub Daddy Net Worth
|Company Name||Scrub Daddy|
|Founder Name||Aaron Krause|
|Aaron Krause Net Worth||$70 million|
|Scrub Daddy Net Worth||$250 million|
|Last Updated||May 2023|
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Aaron’s journey prior to Scrub Daddy
Aaron Krause had an entrepreneurial brain right from the beginning.
While all sponges are made of polyester, nylon, or cellulose, scrub daddy is made of polymer. Changes texture in response to different water temperatures. Upon graduating from the university he announced to the dismay of his parents that he was going to start his own car washing business. While talking about the early days in an interview, Aaron said, “To me, I wasn’t simply a car washer – I was the president and CEO of a company.”
Aaron Krause’s first company was Dedication to Detail.Inc which he ran for 16 years. It was during this period that Aaron patented a new type of buffing and polishing pads. His business was acquired by manufacturing giants 3M in 2008. Aaron had also designed a sponge to clean grease off his hands. 3M wasn’t interested in the sponge and left it out of the deal. It was something 3M surely regrets.
One fine day Aaron needed something to clean garden furniture when he chanced upon the boxed up sponges. The moment he dipped the sponge in warm water, it softened up. He knew at that moment that he was onto something.
The beginning of Scrub Daddy
Aaron Krause got a patent for his texture-shifting cleaning sponge as well as its smiley-face design. Unlike regular sponges that are made of polyester or nylon, Kraus’s sponge is made of polymer of the polycaprolactone kind. It stiffens up in cold water and softens up in warm water.
After realizing the business potential of this sponge, Aaron Krause invested $75,000 to produce an initial batch with new packaging. Scrub Daddy was born. By April 2012 he had made two appearances on QVC’s shopping channel where the product was sold out within minutes.
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Scrub Daddy in Shark Tank
In the same year Scrub Daddy appeared on Shark Tank offering 10% stakes in his company for $100,000. The pitch triggered quite a bid-war among the sharks. “I’ll always remember the moment I turned down Shark Tank’s toughest judge, Kevin O’Leary,” Aaron recalls. “He made me an offer for 50 per cent of the company and I looked him in the eye and said, ‘Okay, you’re out’.
Celebrity investor Lori Greiner ended up buying a 20% stake for $200,000. In five years time from that point, Scrub Daddy generated $100 million in revenue becoming the biggest company to ever have made an appearance on Shark Tank.
Scrub Daddy’s original pitch at Shark Tank has become the stuff of legend as it is still shared and viewed. For the judges, it was like watching a live TV commercial. They were all visibly impressed. No wonder Aaron Krause got offered twice as much money as his original ask.
To wrap up
Today, Scrub Daddy makes scouring pads, dual-sided sponges, sink organizers, soap dispensers and household erasers and of course, the original sponge. Aaron Krause laughingly says, “Every day, we’re taking market share from 3M. I know they’re kicking themselves for taking Scrub Daddy out of the deal all those years ago.” Scrub Daddy’s story is one of innovation, grit, and entrepreneurial spirit. The way it has grown, Scrub Daddy net worth will surely reach the $500 million mark very soon.