SHARK TANK - EPISODE 407
ENTREPRENEUR: Aaron Krause
PITCH: Scrub Daddy
ASKING FOR: $100k for a 10% stake
BEST PART OF THE PITCH: Aaron has a cute scrubbing tool that changes its texture by adjusting the water temperature that saturates it. Basically, it's a scrubber that goes from hard to soft to attack whatever job you may need it for. The smiley face design allows you to deep clean glasses and silverware easily. Aaron's been on QVC three times already and they've increased his order every time. He's had over $100,000 in sales in over four months. He has one patent and two more pending. He needs the money to increase manufacturing. He's looking for a partner to get into more retail stores.
DO THE SHARKS BITE? Robert doesn't think the product has a retail appeal. He's out. Mark likes the product, but he can't get involved with a product with sales that rely on QVC. Aaron says he has 3,000 stores lined up to sell his product. Still, Mark is out. Kevin offers $100k for 50%. Daymond offers $50k for 15% if he gets Lori to partner with him. Lori doesn't need Daymond. She offers $100k for 30%. This has Kevin offering $100k for a royalty of 50 cents per unit until he gets his money back. Then he gets 10 cents for every unit sold in perpetuity. Daymond then offers $125k for 25%. Lori drops her equity offer to 25% and ups the money to 150k then $200k after Daymond raises his offer, too. It's a feeding frenzy!
THE RESULT Kevin drops his royalty request to 7.5 cents per unit, but Aaron likes Lori's offer. Still, he thinks the equity amount is too much. Aaron asks her to come down to 20%. Lori agrees. These two are all set to clean up with the Scrub Daddy.