[0:04]First into the Shark Tank is Aaron Kraus, who believes his product will make everyday cleaning easier.
[0:15]Hi sharks. I'm Aaron Kraus from Philadelphia, and I'm known as the daddy of the Scrub Daddy. The cutest, but most high-tech scrubbing tool in the world. Today, I'm seeking a $100,000 investment in exchange for 10% equity in the Scrub Daddy business. It's the greatest kitchen scrubbing tool you ever used because Scrub Daddy completely changes its texture by just adjusting your water temperature. Let me show you how that works. Here I've got some hot water, here I've got some cold water. When I immerse the Scrub Daddies in the hot and cold water, a complete transformation occurs. Now, to show you that, I've got 10 lb weights. Here under the 10 lbs, it's soft and compressible, and that's like a sponge. That's for your general scrubbing applications. But here, check that out. It's hard and firm. That's going to be for heavy-duty scrubbing applications. We burn on brown and gravy, tomato sauce, cheese, and mustard onto a glass stovetop and a stainless steel pan. Now, I'm going to take the Scrub Daddy and you're going to see, it's just going to attack right into that burn-on mess, scrubbing it right off. And remember, I'm just using water here. There's no chemicals at all. And it's going to cut right through that. It won't scratch any of your surfaces, but it will clean them beautifully. Now, Scrub Daddy's not really smiling anymore. So I'm going to put him here in the warm water and in just a couple seconds, voila, he's back to bright, fresh, and clean every time. Sharks, that's not just another smiling face. You put it on your hand. You can get to the bottom and clean the sides in one move. And that's smiling mouth. That cleans spoons, knives, forks, spatulas, even large serving spoons on both sides at the same time. Sharks, with your help, Scrub Daddy will be scrubbing and smiling in every kitchen in the world. Whoa! Wow! Scrub Daddy! I never witnessed a live infomercial. That was fantastic. That was incredible. Do you have samples? I do.
[2:09]Where are you selling this now? Thank you. Well, currently, we have been in five supermarkets in the Philadelphia area. We also sell on our website. I've been on QVC three times over about three months. And how'd it go? Fantastic! They've invited me back over and over. And every time I go on, they reorder 30% more than the last time. So Scrub Daddy is humming. And what were your total sales? QVC wholesale. Just north of $100,000. Only in four months. Do you have a patent on this? I actually have a patent, I have two more pending, we have the trademark, we have domain names. Okay, Aaron. What do you need the $100,000 for? What I want to do is set up an independent manufacturing facility with automated equipment. Why do you need to go into your own facility? The biggest problem is, I'm on their time schedule. Are you saying you could be making more revenue if you're 24/7 making Scrub Daddies? The way QVC is going, and we're just about to launch in a whole bunch of stores, we're going to need that capacity. And I have 18 years experience running a manufacturing plant at once 24 hours a day. I know exactly what I need to do to make this thing really efficient. And I'm looking to get a strategic partner who can open this up into the retail stores. I'm only in five supermarkets. That's it. What's your cost? The cost to make one's about a dollar. What are you selling them for? About $2.80. Wholesale? Wholesale. This needs to be in every supermarket, drugstore, Walgreens, CVS. So expensive. Mrs. Shlevinsky goes to the store and picks this off the shelf and says, hey, it's a piece of foam with a smiling face on it, it cost two cents to make in China. That's what she's thinking, cuz a Brillo pad, which is a traditional product is what? A 20-20%... You're comparing it to the lowest end of the lowest end. You take it up to the highest end. Talk about the the the ones like Doby pads or other pads out there that are, you know, brand names. Scrub Daddy, I, I think you've done a great job today, but I don't know if it's going to work in retail. I don't, I don't buy into that vision. Just in the packaging, I just don't know if I see the difference. You know what it is. Well, but it doesn't sell on a shelf, correct. But if you put it in display shippers, which we built, these beautiful cardboard display shippers, and it communicates the message to everyone. You're talking endcaps. You're going to have to pay for those things.
[4:17]It's hard to get them, even if you pay for them. Great job today, but I don't, I don't see the retail vision. I'm out.
[4:26]I understand.
[4:29]I like the product. I think you've you're doing great things, you're doing it the exact right way. But when I hear QVC, no disrespect to Lori, when a company's sales are completely dependent on QVC, that's a disaster waiting to happen. I've got 3,000 stores lined up right now. We're going to be in 3,000 stores. I understand, but even, okay, put aside QVC, you're still a one-product company, right? Not for long. We've got Scrub Mommy, we've got Scrub Baby for doing baby bottles. I've got a holder that sits it on your sink and it's got drains in the legs. You don't understand who you're dealing with. I am... I'm not doubting the scrub market. I'm not doubting you are the scrub daddy, but I'm not a scrub pimp, so I'm out. That hurts, Mark. I wanted to work with you so bad. Mark, QVC does over 8 billion in sales a year and I've done over 500 million myself. Yes you have, and you rotate products in and out of there, and once those products are out, they're out. How about this deal? 100,000 for 50%.
[5:39]Let's start the bidding there. All right, you're out.
[5:46]You know, I'm somebody who can paint any picture, and I think that Lori is a vicious backstabbing shark. That's all true. But sometimes I love her as well because she is the QVC queen. So I'm offering $50,000 for 15% if you can raise the rest from Lori and if she wants to do business with you.
[6:11]Well, here's the thing. You've heard me say before, I can tell instantly if it's a hero or a zero.
[6:45]And I think what you've got here is a hero. No offense, Damon. I don't need you. You don't? My offer is $100,000 for 30%.
[7:04]I will get you into Infomercial right away and I'm pretty confident that we could get this into all retail stores across the country within literally weeks. I'm here for you. I think your deal is awesome. Um, the equity amount is, is too much. Would you consider coming down to 20? I'll tell you what I'll do for you. I'll give you $100,000, we'll never agree on what percentage I should get. I'm going to change the model completely. You're going to keep the whole company. But I want to be your financier. I want you to give me 50 cents on every unit sold until I get the $100,000 back, then it drops to 10 cents in perpetuity. He just wants to increase your cost of goods sold by 50%. Nothing, right? Why give up 30% of your company? Just to sweeten the pot a little bit. I'm going to give you $150,000 for 25%. Whoa! Whoa! What are you going to do? I'm changing my offer actually. $100,000, but for 25%. The experience, the connections, everything that I have, it will be successful.
[8:14]I am partnered with the best of them. Why give up any part of Scrub Daddy? Think of the relationship you have with this sponge. You're selling this thing out, and it's going to cry, it won't be happy anymore. QVC, infomercial, and into every single retailer worldwide. That's the power of what we can do just by one infomercial spot. I can get you there. Wait, wait, I'm not done. I'm not done. We've heard that already. We've heard that already. What do you, what is he going to offer? I want the answer to one question, all right? Do you think 25% of the equity in your company is worth more or less than 10 cents a unit in perpetuity? And he's all talk. Where's he going to take you? It doesn't matter. It doesn't matter. Because you can take, you can take you keep 25% of this business, which may sell 10 million of these. And you keep it all for yourself. But you're going to be keeping nothing because he doesn't know how to get this out to the market. You have any success. You're an idiot, you don't know what to do. I know what to do. Exactly. Who's did a half a billion dollar deal with Walmart? Half a billion. So I understand retail. Okay, I I'd like to review the offers that can change. Wait a second. Let the sponge speak. And it's saying, go with Kevin. Aaron, they're like children out there. It's awful. Let's recap. Let's recap please. 150,000 for 25% from Damon. Okay. Kevin is $100,000 for no percent and a tiny tide of 10 cents. You keep all the equity. Lori is offering you $100,000 for 25%. I offered 150 last time. Whoa! Hang on. I didn't hear that. You said 100, Lori. Oh, well, I changed my mind. $150,000 for 25%. I'll make you a millionaire within a year. So mine just went to 175. Whoa! He's up to 175. Yeah. Mine just went to two. Whoa! The good news is, I just made you an extra 100,000. I'm out. I want to stick it to her. Ouch.
[10:28]Whoa! I'll drop the 50 cents down to 25 cents until the $100,000 is recovered, and then go to 10 cents. Would you go to 5 cents?
[10:43]7 and a half's a deal. Okay, Aaron, you've got two offers on the table. What are you going to do? You have to make up your mind right now. You don't see the benefit of having me as a partner? I never said that. You need to tell me right now whether you're going with me or not, or I'm out. I'm here for you. I think your deal is awesome. Um, the equity amount is, is too much. Would you consider coming down to 20?
[11:21]You know what, I will. I'll go to 20. We got a deal. Got a deal! All right. Good. Way to go, Aaron!
[11:43]That is awesome. Got a deal. Lori, it's it's a dream come true. It's absolutely a dream come true. I don't care how much money you have. I'm so satisfied to know that you lost an extra $100,000. You'll give me back. It's going to be a gangbuster, huge hit in infomercial. Good deal, Lori. It's great deal. Scrub Daddy, you suck!
