CNBC TV - HOW I MADE MY MILLIONS - Blendtec

Summary

Blendtec'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.