CNBC TV - HOW I MADE MY MILLIONS - Blendtec
Summary
TLDRBlendtec's founder Tom Dickson, known for his 'Will It Blend?' YouTube series, showcases the indestructible nature of his blenders by blending unusual items. His journey from creating a high-speed mill to developing powerful commercial blenders is marked by innovation and overcoming challenges, including patent infringement lawsuits. Despite setbacks, Blendtec's sales skyrocketed after a successful legal battle against Vitamix, with annual revenues reaching $65 million, and the company continues to grow and innovate.
Takeaways
- 🏢 Blendtec's headquarters in Orem, Utah is the site of unusual product testing, including blending iPads and glowsticks.
- 🤔 Tom Dickson, Blendtec's founder, often asks 'Will it blend?', which has become a popular phrase and YouTube series.
- 🔧 Tom Dickson has a history of creating durable and powerful products, starting with a high-speed mill for grinding grain at home.
- 💡 The Total Blender, Blendtec's smash-hit product, was born out of Tom's desire to create an indestructible blender.
- 🎓 Despite being dyslexic and having ADHD, Tom Dickson is recognized as an incredibly smart individual with a knack for mechanics and physics.
- 💡 Tom started his own foundry, California Precision Casting, when no existing foundries could make the parts for his Kitchen Mill.
- 🚀 The Kitchen Mill was a success, with $10 million in sales between 1979 and 1981.
- 📚 Tom faced legal battles, including a patent infringement case and a lawsuit from investors, but he ultimately prevailed.
- 🔄 After being forced out of his first company, Tom moved to Utah and started K Tech, which later became Blendtec.
- 💰 Blendtec's success was boosted by the 'Will it blend?' YouTube videos, which showcased the blender's capabilities and led to increased sales.
- 📉 Legal disputes with Vitamix over patent infringement were resolved in Blendtec's favor, with a $24 million payout in 2012.
Q & A
What is the main product of Blendtec?
-Blendtec's main product is the Total Blender, a high-powered blender with microprocessors and pre-programmed cycles designed for both home and commercial use.
Who is the founder of Blendtec and what is his background?
-Tom Dickson is the founder of Blendtec. He has a background in creating innovative products, having previously developed a high-speed mill called the Kitchen Mill. He is also dyslexic and has ADHD, which contributed to his unique approach to problem-solving and innovation.
What was the initial inspiration behind the creation of the Blendtec blender?
-The initial inspiration for the Blendtec blender came from Tom Dickson's observation that the blender portion of his multi-function home machine was being used in restaurants. This led him to develop a powerful commercial blender.
How did Tom Dickson prove the durability of his blender?
-Tom Dickson proved the durability of his blender by conducting actual product tests, blending unusual items such as glowsticks, bic lighters, and even iPads, which became a YouTube sensation.
What was the outcome of the patent infringement case against Vitamix?
-In 2010, a federal jury in Utah found Vitamix guilty of patent infringement. Vitamix lost an appeal in 2012 and was ordered to pay Blendtec twenty-four million dollars in damages.
How did Blendtec's marketing strategy evolve with the introduction of their YouTube videos?
-The introduction of Blendtec's YouTube videos, created on a $50 marketing budget, showcased the blender's ability to blend unusual items, leading to a significant increase in sales and brand recognition.
What was the initial challenge Tom Dickson faced when trying to develop the blender jar for his multi-function home machine?
-The initial challenge was the high cost of developing the precision mold for the sturdy blender jar, which ranged between $80,000 and $112,000. Tom designed a two-part mold for $40,000 to overcome this challenge.
How did Tom Dickson's personal attributes contribute to his success?
-Tom Dickson's dyslexia and ADHD, along with his curiosity about mechanisms and speed, contributed to his innovative approach to product development. His ability with gears, physics, and motors allowed him to create indestructible and powerful products.
What was the turning point for Blendtec in terms of commercial success?
-The turning point for Blendtec's commercial success was when they developed a higher-powered blender with microprocessors and pre-programmed cycles, which attracted interest from smoothie shops, restaurants, and coffee houses, including big names like Starbucks and Jamba Juice.
How did the legal battle with Vitamix impact Blendtec's business?
-The legal battle with Vitamix, which resulted in a victory for Blendtec, stopped Vitamix from making the infringing jar and led to a significant financial settlement. This victory likely bolstered Blendtec's reputation and financial position.
What is Tom Dickson's approach to innovation and improvement?
-Tom Dickson's approach to innovation is to always look for ways to improve existing products and to anticipate what others might copy, ensuring that his products remain ahead of the competition.
Outlines
😲 Invention and Challenges of Blendtec's Total Blender
The script introduces Blendtec's headquarters and its founder Tom Dickson, who is known for his 'Will It Blend?' series on YouTube. Tom's quest for an indestructible blender led to the creation of the Total Blender, a product that gained popularity through videos demonstrating its ability to blend unusual items. The company's success story is rooted in Tom's past, including his dyslexia and ADHD, which he overcame to become an innovative inventor. His first invention was a high-speed kitchen mill that he developed in the 1970s, which led to the establishment of his own foundry when no existing foundry could produce the necessary parts. Despite facing legal battles over patent infringement and being ousted from his own company, Tom persevered and eventually founded Blendtec, creating a powerful commercial blender used by big names like Starbucks and Jamba Juice.
🚀 Legal Victories and Growth of Blendtec
This paragraph details the ongoing innovation and legal struggles faced by Blendtec. Tom continued to improve his blender's design, introducing the 'Wild Side Jug' with a large blade and a breakthrough in blending technology. The company faced a significant challenge when competitor Vitamix allegedly copied their jar design. After unsuccessful attempts to resolve the issue amicably, Blendtec sued Vitamix for patent infringement in 2006. The launch of Blendtec's YouTube videos, showcasing the blender's capabilities, led to a surge in sales. In 2010, a federal jury found Vitamix guilty, and in 2012, they were ordered to pay Blendtec $24 million in damages. Despite the legal battles, Blendtec's sales grew to around $65 million a year by 2011, with expectations of even higher growth as they re-entered commercial spaces. The paragraph concludes with Tom and Beverly Dickson reflecting on their success and looking forward to their next innovation.
Mindmap
Keywords
💡Blendtec
💡Tom Dickson
💡Total Blender
💡Product Test
💡Inventiveness
💡Kitchen Mill
💡Patent Infringement
💡Commercial Blender
💡YouTube Videos
💡Legal Battle
💡Innovation
Highlights
Tom Dickson, founder of Blendtec, is known for blending unusual items like glowsticks and iPads to test the durability of his blenders.
Blendtec's Total Blender gained popularity through videos on YouTube, showcasing its ability to blend tough materials.
Tom Dickson's innovative approach to creating an 'indestructible blender' involved rigorous product testing with unconventional materials.
Despite being dyslexic and having ADHD, Tom Dickson has demonstrated exceptional intelligence and creativity in mechanics and engineering.
Tom's early interest in speed and mechanisms led him to put 'big engines on little things', such as go-karts and motorcycles.
In the mid-1970s, Tom developed a high-speed mill for grinding grain at home, using a vacuum cleaner motor and stainless steel parts.
Tom's Kitchen Mill invention attracted $350,000 in investment but faced challenges with manufacturing due to the complexity of the parts.
To overcome manufacturing hurdles, Tom started his own foundry, California Precision Casting, in the San Francisco Bay area.
The Kitchen Mill was patented and launched in 1979, achieving $10 million in sales within the first two years.
Tom faced legal battles with investors who sued him for patent infringement and attempted to take control of the patent.
An attorney who became the majority shareholder in Tom's company eventually fired him and took control.
After moving to Utah, Tom founded K Tech and developed a multi-function kitchen machine, including a blender with a unique jar design.
Tom's innovative blender jar design reduced manufacturing costs and was made in America.
Blendtec's commercial blenders were adopted by smoothie shops and restaurants like Starbucks and Jamba Juice.
Blendtec's 'Will It Blend?' videos on YouTube demonstrated the blender's capabilities and boosted sales significantly.
A legal battle with Vitamix over patent infringement led to a $24 million payout for Blendtec in 2012.
Despite the challenges, Blendtec's sales grew to around $65 million a year by 2011, with expectations of further growth.
Tom Dickson continues to innovate and is always looking for ways to improve his products and stay ahead of competitors.
Transcripts
the sleek exterior of Blendtec's
headquarters in Orem Utah offers no hint
of the truly odd stuff that takes place
inside when company founder Tom Dickson
asks will it blend that is the question
glowsticks bic lighter even ipads get
tossed into the company's smash-hit
product the total blender the videos a
youtube sensation were born out of Tom's
actual product test as I'd take two by
twos and marbles and and I try to break
the blender because we want an
indestructible blender and he built one
Tom himself has proved pretty
indestructible as well creating Blendtec
from the rubble of his kitchen mill
business and surviving a potentially
crippling patent infringement case
executive vice-president Richard
Galbreath who's known Dickson since
middles says tom has a long history of
coming from behind you know you had the
kids who were the high fliers
academically Tom was never in that crew
I'm Dyslexic and I'm ADHD so I spent a
lot of time in the corner but I'll tell
you over the last 50 years he is perhaps
one of the smartest people I've ever
known he has an incredible ability with
gears and physics and motors and making
things work
his blenders with their three horsepower
motors are just the latest creation from
a guy who was seemingly born curious
about mechanisms and speed I've always
put big engines on little things from
the go-karts to motorcycles and always
had to go fast in the mid-1970s Tom who
also enjoyed making his own bread from
scratch put his inventive streak to work
developing a high speed mill to grind
grain at home replacing the grinding
stones with fine toothed stainless steel
parts and a better power source I
thought you know I could use a vacuum
cleaner motor to make flour that would
be a major breakthrough eventually he
found investors to pour about three
hundred and fifty thousand dollars into
his invention but there was a problem no
investment casting boundary in the world
could make the part solution do it
himself so he started his own foundry
called California precision casting in
the San Francisco Bay so this is a rotor
and the stator and most parts go
together they don't touch he patented
the technology in his product called the
kitchen mill and introduced it in 1979
sales took off 79 to 81 we had done 10
million in sales still tom says some of
his investors claimed the product just
wasn't up to snuff and that's not all
they sued my wife and I for eight
hundred thousand dollars to try to get
the patent away from he says that suit
was eventually dropped but later he
found several companies using his
technology in their own Mills so he sued
for patent infringement federal court
judge ruled validity of my patent and
literal infringement they tried to make
life absolutely miserable for him
financially but Tom had the patent tom
says he was also blindsided by an
attorney who bought into his company and
eventually became the majority
shareholder so one day announced to me
that he was taking control of the
company and I better behave myself or
I'd be out on the street and so he fired
me
kicked out of his first company Tom
moved his family to Utah so I figured
okay we have the best Mel in the world
I've got the patent on it let's make
Mills and let's come up with a
multi-function kitchen machine to
compete with Bosch and Germany and of
course the KitchenAid trouble was Dixon
and his newly founded Company K Tech
didn't have the capital to develop the
precision mold for the sturdy blender
jar that was key to the product he
envisioned those jars are are costing
between 80,000 and 112 thousand dollars
to make a mold so I designed a blender
jar that the handle just come straight
down and so I can just do a two-part
mold for $40,000 made in America that
comes apart and you just pull the jar
off the core of that mold soon he
discovered the blender portion of his
multi-function home machine was being
used in restaurants so I thought oh you
think that's cool
I can build a really powerful commercial
blender it was the beginning of Blendtec
this time Tom developed an even higher
powered blender with micro processors
and pre-programmed cycles for home and
commercial use smoothie shops
restaurants and coffee houses were eager
to try the total blender in the 1990s
big names like Starbucks - a relative
newcomer called Jamba Juice but they
said we don't have any money and I said
look just give me a nickel every time
you do a blend they got up to 336 stores
and they're doing 50 million smoothies a
year even at $1,000 apiece commercially
the blenders became a hot item still Tom
continued to tinker with its design we
developed a jar call the wild side jug
and this jar has a huge blade it's four
inches in diameter and but most
importantly it has a wild side and this
was the breakthrough in blending
technology business was booming and
production in full swing when Tom got
some devastating news some of our
accounts are saying well Vitamix has a
jar that's very similar they copied
Jarre and this is their copy of the jar
it's exactly it nests in in our jar and
they both have single blades with
winglets Tom's wife Beverly says
initially he wasn't looking to sue top
competitor and industry Titan vitamins
they weren't responding to requests to
abandon the infringement when those
requests were not being met then I think
he felt like he had no choice they were
going into our very best accounts and
stealing those accounts away from us
with our own technology in February 2006
Glenn tech sued Vitamix for patent
infringement in October of that same
year the Blendtec videos created on a
$50 marketing budget hit YouTube
our sales went crazy people think if
this blender can destroy all of this
stuff this can do anything with food
orders for Blendtec's $400 home machine
rapidly rose even as commercial accounts
slid because of the copied blender jars
then in 2010 a federal jury in Utah
found Vitamix guilty of patent
infringement and then stopped Vitamix
from making the infringing jar that's
when things changed Vitamix lost an
appeal in 2012 and has been ordered to
pay Blendtec twenty four million dollars
in damages despite the legal battles in
2011 Blendtec sales had built to around
65 million dollars a year our growth
each year is in the tens of millions of
dollars and they expect even higher
growth since they're back in more
commercial spaces like planet smoothie
now Tom and Beverly have some time to
stop and savor their own smoothies
always sneak the vitamins in while he
begins work on his next big idea his
mind is always always looking at how
something can be done better
now who's going to copy this
you
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