How Did Scrub Daddy Become a Nightmare for Daymond John?

Imagine you sit on the Daymond John’s seat on the pitch of Scrub Daddy on Shark Tank. You tried to get a deal but had to go without striking a deal and gave up it. Four years after featuring on Shark Tank, Scrub Daddy got $110 Million in retail sales and made over $220 Million in annual revenue in 2023. How do you feel about it?

That’s how Daymond John felt when he thought about Scrub Daddy. He regretted not getting the opportunity to invest in Scrub Daddy when he appeared as a guest on “The Drew Barrymore Show. “

The presenter asked,

“Is there anything you’ve ever missed on Shark Tank that you wish to get? ”

Here, how Daymond answered,

“I usually say no, But the company that I have to regret is one I lost the bid on. I lost it against Lori, and it is a stupid-looking little sponge. And every time I go in the store there’s a Scrub Mommy, Scrub Baby, Scrub Daddy. And they’re smiling at me. And Lori’s like, ‘Aha, look what happened.’ And it burns me.” 

Daymond John – @The Drew Barrymore Show

When Daymond backed the deal, he probably didn’t expect the remarkable growth that Scrub Daddy would experience. Now, Scrub Daddy’s net worth is $250 Million. But the owner, Aaron Krause, sought only a $100,000 investment for 10% equity from sharks on the pitch.

As Daymond shared his thoughts, he must have wished he could have invested more in the pitch. He may also have been worried about lost revenue or missed opportunities for growth and collaboration because this deal was one of the best on Shark Tank.

How did he miss chance on the Shark Tank pitch? 

Here’s how it went: In the first bid of the pitch, Kevin O’Leary proposed $100,000 for 50% equity, but Aaron directly rejected it. Then, gradually, Daymond and Lori proposed their bids as $50,000 for 15% equity and $100,000 for 30% equity with the promise of getting into all retail shops within a literary week across the country.

In the second round, Kevin quickly changed his mind, and he presented his bid as $100,000 for a royalty of 50 cents per unit until 100,000 was repaid, then 10 cents per unit. Daymond proposed $150,000 for 25% equity. Then, Lori proposed $150,000 for 25% equity, mentioning how her experience and connections would help ensure the success of the company.

Finally, after some conversations, Kevin presented his final bid as $100,000 for a royalty of 50￠per unit until 100,000 was repaid, then 7.5￠per unit. Daymond proposed $175,000 for 25% equity, and Lori increased up to $200,000 for 20% equity.

That was the moment that Daymond had to go out from the pitch, and he said,

 “Good news was I just made you an extra hundred thousand, I’m out I wanted to stick it to her.”

Daymond John

Here is the summary of Scrub Daddy’s pitch on Shark Tank,

Ultimately, Daymond had to go without striking a deal. Lori Greiner was the Shark who got the deal from Scrub Daddy, a cleaning product company best known for high-tech scrubbing sponges.

Scrub Daddy Made Over $220 Million Annual Sales

Scrub Daddy embarked on an extraordinary journey of success after appearing on the Shark Tank pitch. With over $220 million in annual sales in 2023, now they have more than 60 online & retail partners. Scrub Daddy was the second-most successful Shark Tank product ever, with lifetime sales of more than $900 million.

Also, they only had one product, and now they have increased their product line to over 30. Currently, Scrub Daddy is sold in over 60,000 retail stores in the United States and more than 3000 in Europe.

Conclusion

Scrub Daddy is the second-best product on Shark Tank. With over $220 Million in annual sales, it proves the successful journey of the company, and Daymond is still worrying about that.