A Bidding War Breaks Out During Scrub Daddy's Pitch

Aaron Krause introduces Scrub Daddy, a high-tech scrubbing tool that changes texture based on water temperature. He demonstrates its versatility for both gentle and heavy-duty cleaning without scratching surfaces. He emphasizes its unique design, which allows it to clean the bottom and sides of glasses and effectively clean utensils.

Krause reveals Scrub Daddy is currently sold in five supermarkets in Philadelphia and through its website. He has successfully appeared on QVC three times, with sales exceeding $100,000 in four months. He holds patents and trademarks for his product. He seeks $100,000 to establish an independent, automated manufacturing facility to meet growing demand and expand into retail stores. He states his cost per unit is about $1.00 and he sells them wholesale for $2.80.

Some sharks express skepticism about Scrub Daddy's retail potential due to its perceived similarity to cheaper alternatives. Kevin O'Leary questions its retail viability, while Mark Cuban expresses doubts about the packaging's ability to convey its unique features on a shelf. Kevin acknowledges the strong QVC sales but views the company's dependency on it as a risk. Mark, however, offers $100,000 for 50% of the company, recognizing its potential through QVC.

The sharks begin to make their offers. Daymond John offers $50,000 for 15%, contingent on Lori Greiner joining the deal. Robert Herjavec offers $100,000 for 30%. Lori, impressed by the product, states it's a 'hero' and offers $100,000 for 25%. Kevin O'Leary changes his offer to a royalty-based deal: $100,000 for a $0.50 per unit royalty until $100,000 is recouped, then $0.10 per unit in perpetuity, with no equity.

Robert increases his offer to $150,000 for 25%. Lori counters with $150,000 for 25%, promising to make him a millionaire in a year. Robert raises his offer to $175,000, and then Lori ups it to $200,000. Kevin further sweetens his royalty deal, reducing the initial royalty to $0.25 and the perpetual royalty to $0.05. Aaron ultimately accepts Lori's offer of $200,000 for 20% of Scrub Daddy, fulfilling a 'dream come true' for him.