How I Built This with Guy Raz Scrub Daddy: Aaron Krause. How a Failed Experiment Became a Billion-Dollar Sponge
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Mar 16, 2026 Aaron Krause, inventor and entrepreneur who turned car-detailing tech into Scrub Daddy. He tells the improbable origin story of a failed scrubber turned kitchen sensation. Hear about in-store demos, QVC mishaps, a Shark Tank breakthrough, patent battles, negotiating with 3M, and how he fought copycats to build a category-leading brand.
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How 3M Nearly Bought His Company Before The Crash
- 3M pursued Aaron for acquisition after seeing his automated pad machine; negotiations centered on patents and future value rather than current EBITDA.
- He walked out when 3M's team insisted on EBITDA-only valuation, then continued bargaining until they adjusted offers upward.
Always Carve Acquisition Escape Into Exclusive Deals
- Negotiate exclusivity contracts to include exit provisions for acquisitions and realistic minimums.
- Aaron renegotiated a perpetuity exclusivity with carve-outs: a buyout payment plus 12 months supply at locked price to allow an acquisition escape.
Selling To 3M Turned Payday Into Protection During 2008 Crash
- Aaron sold his buffing-pad business to 3M for double-digit millions and then learned corporate bureaucracy while consulting for them.
- The acquisition closed just before the 2008 financial crash, insulating him financially when markets collapsed.