Have you ever wondered what the net worth of Aaron Krause is? Krause is the “Daddy” of the sponge manufacturer “Scrub Daddy.” So, how profitable is the scrubbing business?
As of May 2023, Aaron Krause has a net worth of $70 million.
Table of Contents
Early Life
Aaron Krause, Scrub Daddy CEO, was born and raised in Wynnewood, Pennsylvania on the 1st of February in 1969.
He’s always been a curious person, looking to discover more and invest in things.
Born to a pediatrician mother and a cardiac surgeon father, you know that Krause had his fair share of knowledge on the science of humans.
He wanted to delve deeper than the surface level of the body, so he studied psychology at Syracuse University.
There, he learned so much about how psychology is related to business success. This knowledge is what Aaron Krause attributes his huge success to.
Starting Out
After Aaron graduated from university in 1992, he invested in creating a pad that car workers could use to clean their hands. He was mainly looking for solutions for his own problems as a car detailer.
He started a car cleaning company, but it didn’t get him so far. This is because back then, people didn’t value the invention and thought it was too expensive. Though it did gain some brief success.
He also had buffing pads created for the same purpose, and 3M acquired them. However, they later decided they would discontinue the product. At that point, Aaron Krause’s net worth started seeing the light.
However, Aaron didn’t give up on his idea but looked at it differently. He thought that his invention could be used for more than just cleaning hands, and can be used to clean dishes or even cars.
So, he managed to showcase his invention on the 7th episode of Shark Tank’s 4th season in 2012.
Scrub Daddy Was Born
Lori Grenier, one of the investors on Shark Tank’s panel, was really intrigued by Krause’s invention. She saw success for the innovative sponge that became hard in cold water and soft in hot water.
So, she rejected the 10% stake in the company for a $100 thousand investment and offered double the amount.
With $200 thousand in hand, Aaron was able to produce plenty of his sponges and offer than to retail shops and even sell them online.
In a matter of 4 years, Scrub Daddy’s sponges generated around $110 million in retail sales.
Scrub Daddy’s Sucess
The original Scrub Daddy sponge is sold for around $4, and the company has over 55 partner retailers, both online and in shops.
Some of these are Amazon, Bed, Bath & Beyond, Fred Meyer, Home Shopping Network, Lowe’s, Shop ‘n’ Shop, Whole Foods, and Walmart.
Aaron Krause Net Worth 2023
As of May 2023, Aaron Krause has a net worth of $70 million. Most of this fortune appeared after his pitch in the Shark’s tank.
Frequently Asked Questions (FAQs)
What Are Products That Scrub Daddy Offers?
The company offers a myriad of cleaning products, including the original sponge with multiple colors. It also has scouring, erasers, special editions, accessories, and organization products for your sponges.
What Is the Net Worth of Scrub Daddy’s Company?
The company itself has a much higher net worth than Aaron, reaching $250 million.
Key Takeaways
What we can learn from Aaron Krause’s story is the following:
Don’t Give Up on Your Idea
Despite the fact that his car cleaning service and his pitch with 3M both didn’t pan out well, Aaron Krause still believed in his product.
He simply looked at it in a different way, thinking of its other uses. Then, he pitched the idea to investors on the reality-show Shark Tank, where it got him double the deal he proposed.
Now, the product is the second most popular product that was born thanks to Shark Tank.
Psychology Drives Business
Needless to say, psychology is an important part of a business’s success. Aaron Krause realized this, especially thanks to his psychology background at university, and really capitalized on it.
With his intricate understanding of the human mind, he was able to garner huge success with the help of the business-savvy Lori Greiner.
Always Be Prepared
“If you’re unprepared, you’re the bait,” is what Aaron Krause said when he made his huge success on Shark Tank with Scrub Daddy.
Had he not been prepared with the Scrub Daddy idea and the willingness to modify it, Aaron Krause’s net worth wouldn’t be anywhere near what it is today.