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Shark Tank Seas. 3, Ep. 7: Barbara Kisses Her Money Goodbye

By   /   March 3, 2012  /   16 Comments

Scott Jordan of TEC

Barbara is back… and she wasted no time making a big statement in the first segment of tonight’s episode. Did you miss out on the newest Shark Tank shenanigans? Here’s our weekly recap to get you all caught up:

Kisstixx seeks $200,000, asks the Sharks to kiss!!

First into the Shark Tank was Kisstixx, a two-flavored lip balm pack designed to create an amazing flavor combination when used by two kissing partners. Founders Dallas Robinson and Mike Buonomo sought $200,000 for 20% of their company. A lip balm for kissing made the perfect opportunity for the guys to break out a kissing booth for a live demonstration. Viewers across the country cringed as Barbara and Kevin O’Leary tested out the fire and ice kissing combination. Let’s just say… we didn’t see any sparks flying. While the company’s sales track record isn’t bad ($80,000 in about a year), it wasn’t until the guys revealed their pending deal with Walgreens that the Sharks started chomping. Cuban offered Kisstixx $200,000 for 40% of the company, and the guys accepted!

View this Shark Tank episode online

Shark Tank Success Story: Daisy Cakes

Just before the commercial break, viewers got to see an update from last season’s drool-worthy baking company, Daisy Cakes. After making a deal with Barbara, Daisy Cakes has gone from a few thousand dollars in sales per year, to over $100,000/month. Daisy Cakes has moved from at-home baking to an industrial-size kitchen where 160 cakes can be baked at a time. Founder Kim Daisy said, “working with Barbara is absolutely amazing.”

The Smart Baker requests a $75,000 investment for 25% of company

Along the baking theme, next into the Shark Tank were Daniel and Stephanie Rensing, representing their company The Smart Baker. They sought $75,000 for 25% of the company. The Smart Baker is a line of products designed to help everyday chefs in the kitchen. Their hallmark product is the cheat sheet apron, which helps chefs easily convert ingredient amounts with a cheat sheet printed upside down at the bottom of the apron. Smelling a good deal, Daymond and Barbara each presented offers of $75,000 for 40% of the company, though Barbara also wanted a 5% royalty until her initial investment was recouped. Swayed by Barbara’s sweet-talking, the Rensings agreed to her offer.

Heat Helper inventor, Lyle Chutey asks $100,000 for heat circulation device

Next up was the Heat Helper, a product designed to circulate hot air from the dryer back into the home. Inventor Lyle Chutey was asking the Sharks for $100,000 in exchange for 50% of his company. While the Heat Helper is already being sold by special order to customers through Lowe’s and Wal-Mart, the Sharks didn’t seem sold on the idea’s success and they all bowed out.

Technology Enabled Clothing (TEC) asks for $500,000, then walks away from it

Last into the tank was the most controversial contestant of the night: Scott Jordan. Jordan’s invention, Technology Enabled Clothing (TEC), is designed to give gadget-loving geeks a pouch for every device, all in a slim-profile article of clothing. Jordan has patented his idea of an inner-jacket wiring system to make headphones easily accessible, even if you’re wearing a parka. He sought to sell the patent to the Sharks for $500,000 in exchange for 15%. The Sharks were definitely biting at this one, though the quickly realized that Jordan’s offer was only for his patent-not for his multimillion dollar retail business that makes use of this technology. Upon learning this, Kevin quipped, “Why are you so greedy? … and savvy?” After probing for more answers, the Sharks also learned that Jordan was formerly an attorney, and that he was currently getting a royalty stream from numerous big companies (North Face, Burton, etc.) for patent infringement. Despite Cuban’s obvious disdain for Jordan, Robert was ready to make an offer: $500,000 for 15% of the patent and retail business. Wasting no time, Kevin made the same offer. With two offers on the table, Jordan stepped out of the room to consult with his friend Steve Wozniak (co-founder of Apple). After a brief chat, Jordan made one of the boldest moves in Shark Tank history: pointing at Robert and Kevin, he told them that they were both out. Without another word, he strutted out of the room.

What did you think of the episode fans? Are you happy to see Barbara back in action? Did you think Jordan beat the Sharks at their own game, or was he just being greedy? Let us know!

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About the author

Author

Carolyn is a 20-something marketing professional from Chicago, and she's been working with InTheSharkTank since August 2011. Some of her favorite past Shark Tank contestants are Litter SF, REMYXX, and Villy Customs. When she's not busy live-tweeting the show, Carolyn likes reading on her Kindle, exploring the city, and getting in touch with her inner Betty Crocker. Google+

16 Comments

  1. Michael E says:

    I think Jordan beat them at their own game. They are always trying take people’s businesses and turn them in to licensing deals. Jordan gave them that and all they wanted to do was put his other company on the table and undervalue it. Good job Jordan!

  2. Carolyn says:

    I tend to agree with you Michael– Kevin called it because he knew Jordan was actually being smart about his decision. The Sharks usually roll over novice business owners so easily, so it was really refreshing to see someone who knew their business well enough to take a stand against a sub-par offer. Though, I do think he could’ve been sliiightly more gracious in rejecting their offers (but then again… are the Sharks ever that gracious?)

  3. Joe says:

    This guy has steve wozniak as a partner…. He should have never been on this show.

    What a joke!!

  4. Scott G says:

    I happen to have it on good authority the lack of graciousness was due to editing, not because Scott wasn’t. What you didn’t see was Scott go over to shake everyone’s hand afterwards (and everyone accept Kevin, who mysteriously refused….awkward).

    I remind you all, you see what the producers want you to see. Over an hour of presentation and negotiation crushed down into less than 20 minutes.

    Overall, was a great watch.

  5. Jimmy says:

    Wow, this was one interesting episode. Very refreshing to see someone walk in and talk back to the sharks with conviction. This guy was a machine, nothing effected him. The sharks are always making snarky comments, playing on peoples weaknesses and insecurities which has led them to acquire more equity that they normally would of. I mean what is Marc Cuban complaining about, USA is built of ridiculous patents and law suits like this. Hypocrite. Daymon just yaps too much like always, makes no deals, no one really cares about his deals, he pretends to be somebody when in fact he’s not. Kevin does really seem to know a little about every market. it was priceless to see how Robert acted when Jordon pointed and told them they were out, hahah, funny to see how they take such offence but when the tables are turned anything goes. yup yup…….this was great.

    By the way Scott G, where do you see the extended filmed episodes???

  6. BC says:

    I have purchased Scot’s products in the past. I was shocked he qualified for this show. His clothing business is worth over 12 million I think he said… He should not have been on this show. This is for everyday people who have ideas and who don;t have the resources to get their products out. I was actually upset he wasted so much time on the show when they could have had at least 2 other ideas presented. I mean really, Woz is on his board? He sould not have been here… sorry Scott, thats just how I feel.

  7. Scott G says:

    I didn’t see the extended filmed episode (I really wish I could on this one), but I do have a first hand account of what happened. Living in Los Angeles sometimes has it’s privileges. :)

    Unfortunately, I can’t say any more than that – there are a lot of people in that room.

  8. I agree with most of you, Jordan did what was best. I wish he had just plain out made a strong counter-offer though, like 5 mil for 15% of both. But he had every right to say no to the other company, but the Sharks don’t like it when anyone (remember in previous seasons?) holds back something that is working and profitable, and offers something yet unproven. TEC certainly has proven market viability, but who knows if other clothing manufacturers are going to be interested in licensing it?

    Kevin would have owned that thing, and licensed it out so well. That would have been worth everything. Jordan probably could have gotten Kevin up to 1-2mil for that 15%, and over lifetime, it might have saved him a load of hassle. Never know… ;)

  9. Paul Meyers says:

    What most don’t realize was the show wouldn’t allow Scott Jordon to discuss his retail business (Scottevest) to the sharks. What most also don’t realize is the editing process of the 1 hour of taping reduced down to less than 20 minutes can make the viewer see Scott in a different light, whether good or bad. I think Scott Jordon is one of the most transparent business people I have ever seen. Lives/eats/breathes his business and that’s why he is successful. I guess you can call Shark Tank entertainment but as far as what really happens and what you and I really see, it’s much different than that of actuality.
    Great Job Scott

  10. Macpug says:

    I stood up at home and applauded Scott for leaving. What a bunch of greedy jerks, especially Cuban.

    I agree with what Scott G. said here as well…and you really do see what they want you to see, the “editor’s slant”. Scott (Jordan) posted about this himself, saying that it was compressed into a very short time frame. He said they all shook hands, and he hugged Barbara, but Kevin wouldn’t, as noted. Scott said in over 20 years, no one has refused to shake his hand…it’s called common courtesy and professionalism. It just showed that Scott was the bigger man, and Kevin was acting like a spoiled little brat who didnt get his way…or his easy piece of Scott’s pie, in this case. I’d love to see the unedited version ;)

    I’ve always liked Scott, and I’ve been using his products for years. Seeing this gave me even more respect for him. I think it was great that he stayed true to himself and his company by not jumping at the deal just for the money, especially when they were totally ripping him off (or trying to). Great job, Scott!

  11. Rob Merlino says:

    @ Scott G: It was Robert who refused to shake Jordan’s hand. Scott told me himself.

  12. Scott Jordan says:

    Below is an email I sent to my contacts. If you are willing read it and more importantly watch the extended commentary in this lengthy video, explaining what happened without the edits, http://www.youtube.com/watch?v=WheCO4RgMGI, I think you better understand what was involved.

    Dear friends, family, and distant relations-

    There has been some controversy arising from my appearance on last week’s episode of Shark Tank. I certainly wanted to stir things up; some of the reactions were expected, but some development we could have never seen coming. Just yesterday I engaged Mark Cuban in a constructive and public debate on Twitter regarding the patent system.

    In response to the controversy that has followed the episode, I have prepared an official statement as well as video commentary. The video commentary (extended-dvd-style) can be found at this link. A recording of the official statement can be found here, and the written version follows below. Again, I want to apologize for crowding your inbox but, more importantly, thank you for your continued support. Despite some ruffled feathers, I was pleased with the outcome and am hopeful about the continued momentum.

    Scott

    Why I Walked Away from $1 million on Shark Tank

    On Friday, March 2, I appeared on ABC’s reality show Shark Tank. The premise of the show is as follows: an entrepreneur enters “the tank” with an idea and an offer. He or she pitches the product or business, and the sharks decide whether or not they want to invest – the two parties either reach an agreement, or the entrepreneurs leave with nothing but some good exposure and a memorable experience.

    Since the show aired on Friday, I have received overwhelming feedback from all over the board. The criticisms of those who took issue with the appearance fall into a few distinct categories. There are those who feel I used the platform merely for PR purposes – that I was never interested in a deal, but rather that I took advantage of the exposure. I am also receiving criticisms in regard to my demeanor – that I was disrespectful, aggressive, and less-than-cordial in my interactions with the sharks (although usually expressed in more colorful terms).

    My response is as follows: I entered the tank in hopes of gaining a strategic business partner who would help me establish my licensing company, TEC-Technology Enabled Clothing®, in a way that I have as yet been unable to do. The exposure inherent in an appearance on national television is something no entrepreneur would ignore. It was only after it became apparent that none of the sharks were interested in making a deal for TEC® that I decided to focus on the PR value of the experience.

    I knew that although I did not get a deal with one of the sharks, there would still be an opportunity to expose the world to TEC® and to SCOTTEVEST, and I was not about to let that opportunity slip by. That said, there was no “free” publicity. As quoted at the end of the show: “Sony Pictures Television, a Designee of Mark Burnett, and ABC may receive equity in or a share of revenues generated by the businesses included in this program.” I went in pitching TEC®. If I made a deal for SCOTTEVEST (or even mentioned the name), this company would also be subject to this agreement. Far from free publicity. Those who know me know that I am transparent to a fault; I cannot lie and I cannot act. What you saw was the real deal.

    Publicity issue aside, I feel that the segment the public saw on Friday needs some context; there was a lot the public did not see from the interaction. The 60 minutes that I was in the tank was edited down to around 20. ABC, in the end, is trying to make good TV, and no one can blame them for doing that job well (which begs the question, wasn’t this a publicity stunt for them?). Granted, that is not the whole story, and to blame editing entirely would be a cop-out. What you saw were my honest reactions in the midst of a heated debate. I really did call Robert’s initial offer insane, and I did tell Robert and Kevin they were out. I argued fiercely with Mark Cuban about intellectual property rights (he later indicated in a podcast that he made it his mission to make me cry), about standing by my patent and about the essential “American-ness” of the patent system.

    But let’s put this in perspective. How many times have you seen entrepreneurs – people who are really starting out, who have a great idea and need guidance and money – flounder into the tank and get taken advantage of? The difference between my segment and most others is that I am a businessman and that I was willing and able to engage the sharks in a serious business interaction. I most definitely wanted to strike a deal with one or more of them, to get TEC® off the ground as a licensing company with much more to offer than a single patent for a wire management system. But I was not about to turn wobbly kneed, forget why I was there, and sell away part of the company that my wife and I have put our hearts and souls into for over ten years.

    Every time I watch the episode (which is not as many times as some people would like to believe), I see something else – I remember what happened to induce a reaction, or I think about what one of the sharks said that set me off. I see the moments in which I appear arrogant, and knowing myself, I see what I really was: cornered. A good friend of mine wrote after he watched the show: “[you] come across as a guy who just loves his company and product…” I am a guy who loves his company and his product, and in those moments, I was a guy who saw that company threatened. Those sharks are persuasive personalities, and they are powerful people. From a businessman’s perspective, these are the people we look up to. The pressures add up – the intimidation factor, the thrill of being in the company of the sharks –but as the sharks and the rest of America learned, it would not be bullied into taking a bad deal.

    To recap: I entered the tank with a deal that I thought was reasonable. I would like to mention that over the course of the weekend I have had interest in TEC® alone, which confirms that this was a realistic pitch. The sharks wanted something else, however. What ensued was an aggressive negotiation between equals, and we ended up not making a deal – it is that simple. No one on that panel is involved in the future of TEC® or SCOTTEVEST, but I am confident that the future is bright for both. I want to thank my friends and followers for their support via Twitter, Facebook, and blogging; SCOTTEVEST was built on transparency and through direct relationships with customers. I want to emphasize that this is not “just TV” at this point. The issues that arose during the filming – about protecting intellectual property, about the value of my licensing subsidiary, and about what it means to negotiate in business – are very serious to me. Expect these debates to continue.

    Scott Jordan
    CEO and Co-Founder
    Tec® and SCOTTEVEST, Inc.

  13. mark says:

    hi, I was sure I saw an idea where the guys proposed putting vending machines in cabs/taxis?? I can’t seem to find anything on google, can u tell me if this is right and if so which season/episode??

    thx

  14. Beth Henry says:

    actually i thing that hole company (scottevest) is a bunch of assholes ive delt with them before and there rude liers just like scott jorden

  15. Kalvin U. says:

    It seems that Scott was only there to advertise not to get a deal.
    Name dropping Woz and trying to look like the guy who stands up to the sharks. I don’t know why they even showed the guy.

  16. anon reader says:

    to scott jordan:

    Regardless of any editing for damatic effect, you still came across as an @$$. !!!

    Throwing a casual or more association with Wozniak around was
    defeating….

    If there is SO much $$$$ in the licensing, I would think you would have
    had Steve jobs ( when alive) or Woz….. laying your streets of gold.

    Won’t waste my time or money on your products. …………….

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