Featured Coaching Excerpt - Notes & Transcript, Part 1
Fun Factoid: "Research shows men are four times more likely than women to ask for a salary raise." -NPR(2011)
Ask Yourself: Am I pricing my product/service lower than what it is really worth?
Notable Quotable: "It's always ok to ask for money." -Rachel Faucett
Ask Yourself: Am I spinning my wheels on work that barely gets me by, leaving no time for work that can really make some money?
-Daniel McKenna here today introducing you to the highly intelligent and successful Rachel Faucett. We'll be talking with Clay Clark about females. It's OK to be financially motivated. If you do not already know who Rachel Faucett, she is the consultant of choice for Pottery Barn, Disney Kids, Home Depot, Whole Foods, and countless brands. Her website, Handmade Charlotte, has been featured in Martha Stewart Living, Better Homes and Gardens, HGTV, Huffington Post, Business Insider, and more.
In this lesson, Rachel Faucett is talking about the mindset of specifically female entrepreneurs, and how it is OK to be financially motivated. Ladies, Rachel has been incredibly successful in her business and she has made a lot of money along the way. So this lesson can be very valuable to you. So take notes. Get out some action items. Let's go.
-All the single ladies. All the single lades.
-Hey, Rachel. How are you doing, my friend?
-Hi, Clay. How are you?
-I'm doing good. I was singing some Beyonce, and I realized that song really wasn't applicable, because there might be all the married ladies, all the married ladies. Just ladies in general is we're talking to right now. And I say we-- I'm going to mainly defer to you. One, because I you have a lot more estrogen than I have. Two, you can definitely relate to some of the stuff that the females are dealing with here. But we're going to talk about it. There's a lot of mom-preneurs. There's a lot of female entrepreneurs. And we're going to talk about-- females, it's OK to be financially motivated.
You were sharing with me an unbelievable story. And I'd like for you to share that with the Thrivers out there about your interactions with Mrs. Hillary Clinton and kind of what happened there.
-So I was at Women of the World Conference in New York City at Lincoln Center. And it truly is the women of the world. And it was some of the most powerful women-- agent like world changers. I mean, world changers. I mean, women that have fought for countries and actresses that have stood up for a worldwide organizations. These are big, big, big thinkers.
And one of the keynotes was Hillary Clinton. And I was third row with my friend, Isabelle Kamin. And one of the points that I really took out of it was-- the statement that really resonated with me quite a bit was when a male will come up to her and get a promotion. They're giving a guy a promotion, and they will unanimously say-- unanimously say-- this is a long-time coming. Actually, I'm going to negotiate for a little bit more.
-So the dude wants more money.
-Yeah, he wants more money. And unanimously-- unanimously-- the female, she said, when they're giving her a promotion, she'll say, do you think I'm ready? Do you think I'm ready? Do think that-- thank you so much for giving me that much money. And so with that, I really thought-- and I hear it all the time-- that we're afraid to ask for money.
I mean, I heard it yesterday. I had a few ladies spend the weekend here at the cabin. And we talked about that quite a bit. And they said, Rachel, we're just not-- you seem to be good at asking for money. And you seem to be good at doing that. I'm like, it's always OK to ask for money.
-There is a lady who comes to mind who I had worked with years ago. And she had priced yourself-- now, you've probably seen this. She had the most incredible product out there. People would come from multiple cities and states to buy her product. She was kind of regionally known. She'd won some awards. But she priced herself so low-- she was a single mom. Bless her heart. Her husband left her, so it was just her raising kids. And she priced herself so low that no matter how hard she worked she would barely ever get above the poverty line.
-And I talked to her. I said, hey, we need to raise prices. And she says almost exactly what you're saying, I don't know. I don't know if I'm ready for it yet. She wasn't getting a promotion. I was just trying to encourage her to giver herself a promotion.
-You know I think a lot of people get into these price things, that they're afraid if they take away that $500 price point in packages-- when they really know that $500 price point is really more like a $5,000 price point, that they're not going to pay it. I think about like if they're going to pay $500, I bet you they're going to pay $1,000. And you could actually cover your expenses at that point... Tulsa Community College Workforce Development.
So I feel like it is OK-- value yourself. But it's OK if you don't get that work. So if you don't get that work, that $500 work, or you're like, oh, what if I don't get any work? What's going to happen is, you're going to get a lot of $500 work, and you're going to be spinning your wheels, and you're not making time for the $50,000 work. So you're tied down with all this work. And all your resources, and all of your energy, and your entire team, and everybody is tied done with this.
You're giving them a $50,000 package, but you sold it for $500. So instead of selling the package for $500, price it up a $5,000 package. You know, and then wait for those guys. And then negotiate, maybe, longer term deals and things like that you can negotiate. But stop spinning your wheels, because you're not making any money anyway. That's not going
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Featured Coaching Excerpt - Notes & Transcript, Part 2
80% of businesses fail within the first 18 months. Bloomberg (2013)
Lesson Nugget: You want to be motivated financially, but you want to find a sweet spot that people will still pay you for your business.
Action Step: If you feel like your product/service is underpriced but don't want to take a huge leap, increase prices by 10-25%
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-And I would say this-- one thing if you're watching this and you're like, oh, I don't know if I could do that. The thing that's kind of sad is that in our country and other countries about 8 out of 10 businesses really just don't make it. There's all sorts of statistics that say only 8 out of 10 don't make it.
-And I see business owners who are giving up their days, their nights, their weekends, their family time, their down time, their fitness, their health, their families-- all these sacrifices and they're not even charging enough to make a profit. I would rather you go get a job at a local restaurant. I would encourage you-- if that's you.
It'd be better for you to go get a job at a local restaurant where at least you can provide health care and take care of yourself than it would be to die on the hill of having artificially low prices. Because you can't get up the cajones to ask.
-Right, Anna Griffin runs Anna Griffin Inc. And her company as a $50 million company that she started on her kitchen table. And she's amazing. And she's a female entrepreneur. And she is so aggressive.
When you hear her speak after-- she will say, I am financially motivated. And that's where I sort of owned that. And every time I get a chance to talk to her, I'm so pumped. I like, let's go! I feel like you have to know we're your ceiling is. And don't get so motivated that you're going to price yourself out of any work, but find your sweet spot.
-If you're talking to a lady right now who's starting to get it. They're starting to kind of go OK, OK-- getting some light bulbs going off. If you're talking to her-- a Thriver right now who's watching this-- just what would you say is your final encouragement to somebody who's kind of stuck on the fence as far as that whole pricing thing. They're kind of a little bit afraid to raise the price. What would you say to them?
-Maybe like a 10% increase. You know what I mean? Take baby steps if you're just too afraid to pull the trigger, and triple your price right away, like a quadruple your price. Maybe try like a 10% or 25% increase.
-Good, OK, you heard it here. So if you're somebody right now and you're going gosh, I really admire the success that Rachel's having. And Rachel has designed products with Pottery Barn. And she's done work with Disney. And she's been featured in Huffington Post, and Business Insider, and Martha Stewart Living, and all these big companies. And you're going gosh, I'm in admiration of her. I will tell you-- and I don't mean this at all to criticize you... Tulsa Community College Workforce Development.
But if you can do it-- you're not a college graduate. You're not like a ridiculous genius where you can't relate to humans. You're not like this alien sent from another planet with just this-- you're a normal hardworking human. I know you-- would you agree if you can do it, other people can?
-Awesome. Well, thank you so much for being here. I appreciate-- well, thanks for letting me be here. Because I'm at your place. So thank you for letting me be here. And I'll get out of here so I don't harass you anymore. But thank you so much.
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