ScotteVest

TEC - ScotteVest on Shark Tank

Technology Enabled Clothing - Season 3 - Episode 311 - Update

ScotteVest and TEC pitched on Shark Tank Show
Scott Jordan on the Shark Tank Show
 Scott Jordan is the inventor of TEC (Technology Enabled Clothing) and the Scott E Vest Clothing line and boy does he have a story to tell. This is perhaps one of the more interesting stories of all Shark Tank contestant's that continues even to this day. Whether you like Scott Jordan and his inventions or not, it seems everyone has an opinion on what happened inside the Shark Tank and why Scott was even there.


 Did The Shark Tank Meet Their Match or Did Scott Jordan Go Too Far?

To answer that question you really need to go back to when Jordan was in college, studying to become a Lawyer. Ah yes, that answer's a lot of questions right there.
Lawyer's love to debate and they never like to lose. Obviously the Sharks do not like to lose either, and yes, this set's things up for some really good reality T.V. Only difference between most Reality T.V. Shows is the contestant's on the Shark Tank are Very Real and the decisions they make within a short amount of time, will affect their financial livelihood from that moment on. I can only imagine the pressure each and every contestant has felt walking into the Shark Tank and ready to defend their business. A product that began as an idea and passionately has grown into a business you are proud of. Especially if you're on track to do $12,000,000.00 in sales for the year.

What Scott may not have prepared for during the negotiations, was the Sharks being interested in his other company.  The ScotteVest Company, is an apparel company that uses the TEC (Technology Enabled Clothing) within the vest. Scott had a signed contract with the producer's to offer the patent and business potential for the TEC Technology, and nothing else.

As with all Shark Tank contestant's appearing on the Show,
Jordan was under contract to give up a portion of that particular business whether he made a deal with the Sharks or not. All contestants either give's up 5% of the company or 2% of sales (for life) for having a chance to get a deal with the Sharks and have your product seen by millions on the show. Apparently, if you are a part of any other businesses and you mention it on the show, the contract would also include a percentage of that business as well. OUCH!

Hind Sight Is 20/20

Scott Jordan calls Steve Wozniak on Shark Tank
Steve Wozniak co-founder of Apple
wearing his ScotteVest
Obviously no one could have known the details of what really was going on when Scott Jordan first appeared on the Shark Tank Show last March 3, 2012. The one hour Jordan was standing in front of the Shark's was edited down to 10 minutes of some of the most memorable footage ever seen on the show. What could of possibly happened, and why, to get to a point where Scott tells both Kevin O'Leary and Robert Herjevic that "They Are Out" and then carry onto Twitter after the show with several rounds sparring with Mark Cuban.

Scott Jordan on the Shark Tank Show


Scott came on the Shark Tank representing his patented TEC technology for hard wiring your clothes with your gadget's. His pitch was geared towards licensing the technology to other Brands and collect a nice royalty with one or more Sharks for helping structure the deal. Jordan was asking for $500k for a 15% stake, putting the valuation of TEC at $7.5 million. He was using a ScotteVest that is specifically made to accommodate the TEC Technology within the vest but that business was not to be part of the negotiations. He learned very quick to never under estimate the Sharks as they started attacking on all sides. If his other business is bringing in most of the revenue from this patent, then they need the details to make an informed decision. Only problem was he could not mention ScotteVest for fear of losing equity just for mentioning the name during negotiations. This was another company Jordan also owns and on track to do $12 million for the year alone. (Jordan actually ended the year closer to $24 million, doubling earlier estimates) Furthermore, Mark Cuban started attacking the fact that Scott was able to secure a patent on such an obvious idea. Things started heating up until Jordan felt cornered and started to defend his business(es) as if they were his own kids and he wasn't going to just give them away.

To some, Scott came across as being very arrogant and he had no intentions of ever making a deal. To others, he came across as standing up to the Sharks on their level and he was not going to be bullied into divulging information that would of cost him over a million dollars just last year alone if he would of slipped up and actually said "ScottVest" while on T.V.


Seen on the Shark Tank Show
ScotteVest with TEC Technology
After this episode first aired, Jordan mostly got an overwhelming negative response from the viewers but no one really knew all the facts at the time. They just witnessed the Sharks in a predicament never seen on the show and most instinctively sided with the Sharks. Will some people have a different opinion this time around knowing a little more of what's really going on during some of these blow-ups? It should be interesting to see if the public perception remains the same after knowing more of the facts.

Scott Jordan has done a lot of PR since his infamous time on the Shark Tank Show. There are two sides to every story and Scott has gone out of his way to make sure his side gets heard. Scott even has a video on YouTube of him taping himself as he watches his episode of the Shark Tank Show for the first time.
Yes I did watch the whole thing, and in my opinion, he would of made a great Lawyer. Jordan has also brought up a few potential legal issues that I really don't care to discuss further but it has to do with whats already written above. If you are going to be on the Shark Tank Show this is a very good case study to learn as much as you can.

There's no doubt that the ScotteVest Brand is a high quality product that has a functioning purpose using the TEC patent. The sales numbers and the growing list of companies now carrying the ScottVest Brand in retail stores is very impressive indeed.

 The question is, should Scott Jordan of walked into the Shark Tank with one business essentially representing the other, and knowing the contract details better than most, still chose to give the Sharks only the option to invest in one of the businesses and not the whole package? In a roundabout way, it seems that Scott may of set himself up for what ultimately happened.
I have a feeling this story is far from over.

In the meantime, the Brand that was never meant to be in the Spotlight has continued to grow at an incredible rate. This was either the most remarkable marketing scheme to get that much attention and not be covered in the contract (think Daymond John, LLCoolJ and the GAP commercial) or Scott Jordan was simply in the right place at the right time and the TEC Technology has simply become synonymous with the ScotteVest Brand.

The ScotteVest 22 pocket travel vest


Visit ScotteVest Here
Technology Enabled Clothing
Scott Jordan on FaceBook
Follow Scott E. Vest on Twitter

8 comments:

  1. STEELWOLVES8:54 PM

    Scott made the correct business decision. The Sharks were trying to undercut the value of the business Scott was offering. Only bad thing was he didn't get access to the Sharks business contacts. Considering how successful he is, perhaps he didn't need them anyway. And I suspect he knew that fact all along.

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  2. Anonymous5:07 AM

    Mr. Wonderful, You're Out!
    To funny.

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  3. Anonymous11:25 AM

    You are incorrect when you say that viewers instinctively sided with the Sharks. I sided with the Sharks because I am frankly appalled that he was awarded a patent for a pocket and a buttonhole. A buttonhole is hardly original technology and awarding a patent for what is, in fact, a basic sewing methodology is a dangerous precedent. Passing a cord through a channel is no different than passing a wire through a sewn channel and 200 is not the first time anyone came up with it.

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  4. This guy was too arrogant to do business with. He tried to sell Product B based on the success of Product A.

    Also, it's "could have" and "would have" not "could of" and "would of."

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  5. Anonymous10:57 AM

    this guy was too arrogant and the sharks were underestimating his company but I think scott was too arrogant.

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  6. Anonymous1:17 AM

    it wa pr stunt for Scott and nothing more

    if the co-founder of apple wont toss him $500k for the patent and put in the time to license it.....well kinda fishy

    and likely woz is helping him now.....but still.

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  7. My opinion/guess how this went down... He went in looking for a deal; not to promote SeV; but as any smart marketer knows -take advantage of the situation - and he did. The producers are not dumb... they let him take his vest on as a demo knowing about the other company; and knew it would be good TV. Scott just chummed the waters and went down swinging like any good business mind would. Did he ask for a lot of money -sure; most do or should if they can back up potential with their experience and successes. Did he position the deal well? Of course - he won... Many are still talking about it (like us). Was he arrogant? Perhaps. Who wouldn't be after building a company from zero with his wife one sale at a time. Defenses had to be up going in - and I think he rocked it. Successful? Obviously. A straight shooter? Absolutely. Brilliant business marketer? Of course. Just follow along -he 'runs the business from the inside out' and you can learn/watch/participate through social media. Hard worker? The guy never stops. Accessible? Yes, he learns from and asks his fans/customers about everything - even zipper designs -which is extremely smart - it's free (with social media), useful, and builds ideas. Everyone can argue why/how the show happened, but it's build to entertain and certainly did. I haven't seen anyone hit the tank since or before that had the experience and passion to stick to their guns as he did. I don't see this as 'bad' publicity in anyway; but even is some do - that's good publicity. In the end great marketers/business people listen, challenge, create, negotiate, and drive their own success or failures. He's clearly doing that. Bravo Scott! I see a book or better yet interactive history/story media site in your future - tell your story so that other entrepreneurs can learn more 'from the inside out'.

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  8. Anonymous11:17 PM

    Scott stated that he made $2.1 Millions profit. 15% of that alone is $315,000. So not counting the licensing or the intellectual property the shark would recoup his investment in 19 months assuming no growth of any kind for the existing business. The sharks were too greedy not the other way around. I supported Scott immediately. I like Mark Cuban a lot but he was angry at the system of patent and he took it on Scott.

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