How I Made Over $220M In Sales Creating Scrub Daddy | The Ground Up
On store shelves, customers might only see a bright yellow smile waiting to add some shine to the kitchen. But, behind the iconic ridges and gleaming eye holes are years of sweat and machine grime for Aaron Krause, 54, Scrub Daddy’s Founder and CEO.
Aaron’s entrepreneurial journey started when he was just a kid living in Wynnewood, Pennsylvania. At 10 years old, he created his first invention: A rope and pulley system to turn his bedroom light on and off from his bed so he didn’t have to get up and do it.
From there, Aaron kept his innovative side going by washing cars in the neighborhood. After graduating from Syracuse University in 1992 with a psychology degree, he told his family that he was going to open his own car washing business. His family was shocked and upset with his career path, to say the least.
But Aaron knew he could make it work. Not only by washing cars, but to start inventing new products. In 1994, he invented his first big product, which was a buffing pad for polishing cars.
In 1995, Aaron sold his car washing business and turned his focus to a new venture: Dedication To Detail, a buffing pad manufacturer. A few years after creating his business, he received polyester urethane foam from German manufacturer FoamPartner, which became a key part of Scrub Daddy’s material now known as FlexTexture. However, the buffing pads he was selling with this foam at this time did not sell well and he was forced to stop selling it due to low sales in the market.
On September 3, 2008, Dedication To Detail was bought out by multi-national manufacturer 3M. Aaron’s sponges ended up sitting at the back of the Detail factory for five years until March 2011 when they found a new life. That foam became the material of the sponge for the Scrub Daddy, which he pitched on Shark Tank in October 2012. As soon as the episode aired, Aaron’s life changed forever.
Since then, the company moved their headquarters to Pennsauken, New Jersey in 2021. Their newest facility features a television studio, a warehouse, a koi pond, and a store for customers to buy their products.
Today, Scrub Daddy has made over $220 million in sales for 2023. But, Aaron said his sponge empire is just getting started.
00:00 – This Is Scrub Daddy
00:30 – Meet The Scrub Daddy
01:24 – The Sponge Dynasty
02:22 – Aaron’s First Invention
03:07 – An Early Entrepreneur
04:05 – Creating The Buffing Pad
04:42 – Finding The Right Material & Securing A Patent
05:57 – Starting Dedication to Detail
07:07 – The New Life Of A Sponge
09:02 – Building A Company
10:12 – Spotting A Knock Off
10:22 – Pitching To His First Customers
10:39 – Leveraging The Press
10:57 – Scrub Daddy’s QVC Debut
12:07 – Feeling Inspired By Shark Tank
12:49 – The Road To Shark Tank
13:07 – Perfecting The Pitch
13:54 – Preparing To Swim With Sharks
14:25 – An Unexpected Change
14:49 – Robert Herjavec’s Herald For Retail
15:16 – Mark Cuban’s Cut And Run
15:26 – Withdrawing Mr. Wonderful
16:13 – Lori Greiner See’s A Gain
17:11 – Aaron’s Vindication
17:53 – A Deal for Scrub Daddy
18:07 – Reaching New Heights
18:46 – Aaron’s Partnership With Lori
19:51 – Scrub Daddy Moves To Pennsauken
20:11 – Aaron’s Business Vision
20:59 - Keeping Sustainability In Their Sights
22:12 - One Thing Aaron Would Change
22:42 - Scrub Daddy’s Future
23:13 - The Krause’s Family Lesson
24:19 - What Aaron’s Learned
24:39 - Outro
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