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TEC - ScotteVest on Shark Tank
Technology Enabled Clothing - Season 3 - Episode 311 - Update
|Scott Jordan on the Shark Tank Show|
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
|Steve Wozniak co-founder of Apple|
wearing his ScotteVest
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.
|ScotteVest with TEC Technology|
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
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