Disclosure
Krause: Scrub Daddy will only sell to major CPG or IPO
“Selling this to, like, XYZ private equity firm doesn't tick it for me, and I have no interest in that. This needs to go to the right home at some point, and that needs to be one of the largest companies in the world in the CPG space. That needs to be a Procter…”
Assertion Not checkable as stated
3M excluded the Scrub Daddy prototype from its acquisition of Krause's business
“They went through and carved out five items and said, not interested in any of them.”
Assertion Not checkable as stated
Krause: 3M acquired his business for double-digit millions
“We're talking, it's double-digit millions.”
Insight
Krause: Circular sponges are better suited for kitchenware than rectangular ones
“What I'm noticing now is Is that everything is round. Pots, pans, plates, coffee pots, muffin tins, casserole dishes, they're all round. Why are we using a rectangular sponge with edges? Because this is getting all the way to the sides of all these things, and…”
Opinion
Krause pivoted Scrub Daddy from an industrial cleaner to a kitchen sponge
“This has nothing to do with you cleaning your dirty hands in a body shop. This is the greatest kitchen scrubbing tool in the world. I just need to market this differently.”
What-if
Krause: QVC-Only Sales Model Would Inevitably Hit Saturation and Fail
“It would have been a spike, and then a saturation point, and then they would, the minute that you had a bad show, you would have been kicked off.”
Assertion Contradicted
Scrub Daddy generated $1M in sales the night Shark Tank aired
“We did a million dollars the night the show aired.”
Assertion Not checkable as stated
Krause: Dedication to Detail reached $1M-$1.5M in sales by 1998
“By 98, we were doing over a million, million and a half, but I could see the writing on the wall. This was become multimillion dollars.”
Assertion Not checkable as stated
Krause: Original Scrub Daddy Hand Scrubber Was Priced at $4.50
“It's a really, we call it a highly engineered polymer, and it was made in Germany, so we had to ship it across the ocean, and then we had to cut it and shape it, and it was four and a half dollars.”
Disclosure
Krause signed a perpetual worldwide exclusive license with low minimums
“I signed a worldwide exclusivity for this technology for very, very low minimum quantities.”
Assertion Supported
Krause bought out 50% partner in Innovative Accessory Products for Scrub Daddy
“Well, I had the right to make the final decisions on everything as the CEO of the company, and I pulled out the shareholder agreement, and I said, here's the deal. You're a 50% shareholder, and I'm a 50% shareholder, but I have the right to make the decision o…”
Disclosure
Krause: Scrub Daddy secured exclusive supply rights to German sponge material
“I negotiate with the company and get a, an exclusivity on the material. They can't sell it to anyone else but me. And it turns out for some very specific reasons, no one else can make it. It's literally locked into this one particular facility in Germany.”
Disclosure
Krause: Spent $150,000 on initial Scrub Daddy packaging and branding
“I spent, you know, 150,000 dollars on packaging and logos, and I created this beautiful product in a bright orange box called Scrub Daddy, and I started calling all of the retailers.”
Assertion Supported
Walmart and Bed Bath & Beyond picked up Scrub Daddy post-Shark Tank
“And the Bed Bath & Beyond person that wouldn't talk to us before called us, and Walmart called us, and Lori was really gracious,
and, you know, she joined a bunch of the calls and brought star power, and they were, like, blown away and instantly took the produ…”
Assertion Not checkable as stated
Krause: Scrub Mommy outsells Scrub Daddy by about 10% in every retailer
“And to this day, Scrub Mommy outsells Scrub Daddy by about 10% in every retailer.”
Assertion Partly supported
Krause: Scrub Daddy has nearly 5M TikTok and 1M Instagram followers
“I mean, we have almost five million followers on TikTok now, almost a million on Instagram, and some of our videos get twenty million views.”
Assertion Not checkable as stated
Krause: Scrub Daddy has almost 500 employees worldwide
“Oh, we have almost 500 worldwide.”
Disclosure
Krause: I would step down as CEO if Scrub Daddy goes public
“I would consider going public, and at that point, I would step down. I'm not, I don't want to run a public company. It's far too much red tape for me”
Assertion Supported
Krause: Next venture Tovi produces NHL-approved hockey stick
“I'm in the middle of a brand new startup making this really unique hockey stick called Tovi, T-O-V-I. It's a revolutionary hockey stick that we have NHL approval for”
Assertion Not checkable as stated
Krause's Father Loaned Him $8,000 at 9% Interest to Lease Detailing Shop
“And I saved up the 8000 dollars in a bank account at the end of the summer. I showed it to my dad, and he loaned me 8000 dollars I think it was at nine percent interest at the time, and that was enough money to get a lease on a very small garage in Ardmore, Pe…”
Assertion Not checkable as stated
Krause Lived With His Parents Until Age 29 While Growing Business
“I lived at home until I was 29. But it really gave me the opportunity to spend all my focus on growing the business and not worrying about where I was living or where I was getting food.”
Insight
Krause: Worn wool buffing pads turn into grinding wheels that ruin paint
“And when it gets caked up with chemicals and it wears down, it doesn't become a buffing pad. It becomes a grinding wheel. And if you're not an absolute expert, it's very easy to burn the paint off the car.”
Assertion Not checkable as stated
Krause: Edge buffing pads cost $1+ to make and sold for $3 to $4
“Pad cost to make a dollar something, and we were selling them for three or four dollars.”
Assertion Contradicted
Krause: I have appeared on Shark Tank almost 15 times
“I've been on shark tank almost 15 times and almost every year they do some follow-up and then CNBC picked up all the reruns and started airing them all the time.”
