this is the most important episode
you’re ever going to watch for me
damn bullies I hate them I can’t stand
them they urge me and I’m going to do
that again because I just really hate
you bullies today I had a special treat
for you we’re going to talk about how to
deal with bullies and business
whether you’re new in business or you’ve
been in business for a while trust me
these are five bullies you have to look
out for and boy have I got some stories
for you
bully number one is the worst the
entitled employee bully you ever have
that person that works for you for a
couple years and all of a sudden they
think they should own a piece of the
company oh it’s so obnoxious I had an
intern once that after a couple of years
she literally sat me down and wanted a
contract because she thought she should
earn her own three percent of my
business really you started off as an
intern on Craigslist now all the sudden
you think you’re an owner hand over the
money and we’ll see here’s how you deal
with that you have to set standards from
the very beginning have a contract in
place let your employees know that
you’re growing your business and that
although they’re crucial to the growth
of the business that to be an owner or a
partner that takes a monetary investment
number two is your contractor bully I
deal with this a lot in fashion when you
have a contractor you’re giving them a
cut of goods or they’re supposed to be
making a product for you you’ve worked
out a deal in the beginning to where
maybe you pay them fifty percent upfront
fifty percent after seven days following
the delivery now all of a sudden in the
middle of the game everything changes
they don’t want to release your
merchandise until they’re fully paid or
they try to renegotiate a higher price
point that’s a contractor bully and
those are probably the hardest to deal
with why because they have your goods
and you can’t have sales without your
goods so it’s important to have a
contract in place before any work is
done with all of the contractors on the
terms of your agreement so number three
bully is the hardest to get rid of an
asset business partner bully they sound
a little something like this it’s very
annoying you feel all full of hope in
the beginning because they have all
these empty promises that they can’t
keep oh I’ve been in business forever I
really don’t need your money I’m just
going to help you out you seem like a
nice person I can give you all this
fabric I can do this for you I can do
that for you I can negotiate cheaper
pricing for you and when it comes down
to it they’re on their side of the world
and you’re on your side of the world
you’re still doing a hundred and ten
percent of your business and all they’re
doing is looking over your shoulder
every month for a check and trust me
they’re going to stand there and wait
for you to write it and then the next
time you need something they’re going to
disappear so how do you deal with the
business partner bullies you make sure
there is a clear contract in place and
this is going to be a different type of
contract and say your employee contract
or your contract with your vendors or
contractors this one needs to stay very
clear what each of you are doing for the
business what your responsibilities are
what you’re bringing to the table and
what your promises are and you put a
timeline on that and if your business
partner isn’t staying true to his
promises then that contract is null and
void and the business goes back into
your name bully number four is your
sales bully there are different types of
people in sales you can have people who
are doing marketing for you such as
social media social influencers people
who are marketing your product on a
social media platform it could also be
an actual 1099 sales person whose job is
to go out there and obviously garner
more sales for your company so this is
what these bullies do because they see
that they’re bringing your company a
certain amount of sales they then in
turn start feeling entitled that they
they built your business and they’ve
brought you you know definitely sales
and and they’re still only getting you
know this much percentage and they feel
like they should have a higher
percentage or more of the company okay
let’s think about this okay so say who
is a company that has a sales person say
you’re a sales person at Nordstrom right
Nordstrom’s you’re the top sales person
in the biggest store in New York City
and you have the highest sales of anyone
in all of Nordstrom’s in all the country
we’re going to do you have a sit-down
with a CEO of Nordstrom’s and tell them
that since you’re his top sales person
you think that you deserve a higher
percentage or you should own part of the
company oh that’s absolutely ridiculous
so why is a sales person it’s a job
you’re you’re technically an employee
you’re getting paid you want more
commissions go sell more stuff that’s
plain and simple that’s just how it is
so when you have a sales bully in your
corner you obviously if there’s your
number one you want to keep them happy
so it’s important again to establish
in the beginning in the beginning of the
relationship here’s your commission
chart here is your potential growth and
this is where you cap you know if you’re
selling a hundred million dollars a year
and you’re at five percent and you want
to make twice as much you don’t ask for
ten percent you go and you sell two
hundred million dollars that’s the way
it works you make sure you have that
contract in place and you set realistic
goals and let them know where their cap
is so here are three ways to handle that
first of all you want to have a clear
compensation plan to where they see how
they can make more money on what the cap
is number two is reward your people
people do well with rewards it makes you
feel valuable and number three it’s okay
to make adjustments but make sure it
benefits your business and doesn’t hurt
your clients our number five and last
bully is your customer bully this is a
bully who can cause the most damage to
your business there’s two types of
customer bullies there’s a retail
customer bully and a wholesale customer
bully the retail customer tries to bully
you into deeper discounts free clothes
there they’re never satisfied they hate
your merchandise is cheap it doesn’t fit
well it washes terrible the colors not
the same as it was on their computer
monitor I mean there’s a million and one
excuses and they threaten things like
bad Yelp reviews negative social media
comments or even to go to the Better
Business Bureau
so with these customers is best to
explain that there’s a certain level of
respect that you have to have and if
they cross those boundaries you have to
decide what it’s worth what is it worth
for you to just make them happy and go
away because that’s ultimately what you
want is for them to zip it smile and go
away is it giving them a free pant is it
repairing something is it giving their
money back if it’s not going to hurt you
in the long run just make them happy and
go away because those will be your
biggest viruses I myself am a retail
customer as most of you are there are a
few companies that I really love their
policies I love how I treated when I
call them when I return things I’m super
impressed with the children’s place I
want to order two shirt they sent me
something nine months for my
four-year-old they didn’t even ask for
the product back they just sent me out a
shirt that was the proper size and they
said give that shirt away as a gift
I thought that was awesome maybe happy I
will always shop at Children’s Place
hmmm easiest place to return things they
never bother you it’s super simple they
don’t even ask you any questions you
fill out a form you send it you get your
money back or or they send you the new
product Nordstrom’s also has a great 90
day return policy
my favorite good for people like me who
I don’t like to try things on I just buy
a bunch of crap throw in the bag and go
home and see what fit but it’s also a
downfall when you have the customers who
just return things after they’ve worn it
for 90 days and they want their money
back so they can buy something new so
the give and take you got to decide what
type of customer service what kind of a
customer refund policy is best for you
the second type of customer boy is a
wholesale customer boy this is a
wholesale customer that come with you to
buy goods that are already made and then
they go and turn and resell it on
whatever their platform is so I had this
customer one time a swimwear company out
of California they were ordering
wholesale from me for about a good year
and it was called private label so I put
their label on my goods and after about
a year working together you know we did
about a million dollars in orders
without a contract they try to bully me
into cheaper pricing well I manufacture
in LA I’m a designer the goods are
coming to your door ready to go I mill
all of my fabrics locally I pay for
wages there’s all these components I go
into how my pricing works and it just
wasn’t good enough for them they wanted
me to give them an additional 30% off
which was basically my profit margin so
I would be essentially working for free
well they didn’t like my no answer they
basically kept all of my samples and
ended up knocking them off in China and
Dubai and they strung me along for three
months and then at the end of the three
months lo and behold I go to their
website and there’s my entire collection
available for purchase and I had not
made one stitch of the merchandise
nor did I profit from any of it in fact
it was one of the biggest lessons I
learned in my life and although I took a
hard hit I have learned a valuable
lesson how to deal with a wholesale
bully now that mistake cost me about
five hundred thousand dollars and four
years in court so I hope that you listen
to this and learn from what I’m telling
you and I’m going to just stress this
probably in every single stinking video
and that’s contract contract
pract so there’s no gray area people in
business are not your friends you should
be friends with them after you have a
contract and you can be friendly with
them but without those clear defined
rules in place you leave a lot of room
for gray area and a loss that’s this
week’s episode on value payment so if
your bully I’m coming for you
you ready I got this suggested comment
below I want to hear your bully stories
don’t forget to subscribe to value
payment because we want to get to 1 million subscribers
you’re ever going to watch for me
damn bullies I hate them I can’t stand
them they urge me and I’m going to do
that again because I just really hate
you bullies today I had a special treat
for you we’re going to talk about how to
deal with bullies and business
whether you’re new in business or you’ve
been in business for a while trust me
these are five bullies you have to look
out for and boy have I got some stories
for you
bully number one is the worst the
entitled employee bully you ever have
that person that works for you for a
couple years and all of a sudden they
think they should own a piece of the
company oh it’s so obnoxious I had an
intern once that after a couple of years
she literally sat me down and wanted a
contract because she thought she should
earn her own three percent of my
business really you started off as an
intern on Craigslist now all the sudden
you think you’re an owner hand over the
money and we’ll see here’s how you deal
with that you have to set standards from
the very beginning have a contract in
place let your employees know that
you’re growing your business and that
although they’re crucial to the growth
of the business that to be an owner or a
partner that takes a monetary investment
number two is your contractor bully I
deal with this a lot in fashion when you
have a contractor you’re giving them a
cut of goods or they’re supposed to be
making a product for you you’ve worked
out a deal in the beginning to where
maybe you pay them fifty percent upfront
fifty percent after seven days following
the delivery now all of a sudden in the
middle of the game everything changes
they don’t want to release your
merchandise until they’re fully paid or
they try to renegotiate a higher price
point that’s a contractor bully and
those are probably the hardest to deal
with why because they have your goods
and you can’t have sales without your
goods so it’s important to have a
contract in place before any work is
done with all of the contractors on the
terms of your agreement so number three
bully is the hardest to get rid of an
asset business partner bully they sound
a little something like this it’s very
annoying you feel all full of hope in
the beginning because they have all
these empty promises that they can’t
keep oh I’ve been in business forever I
really don’t need your money I’m just
going to help you out you seem like a
nice person I can give you all this
fabric I can do this for you I can do
that for you I can negotiate cheaper
pricing for you and when it comes down
to it they’re on their side of the world
and you’re on your side of the world
you’re still doing a hundred and ten
percent of your business and all they’re
doing is looking over your shoulder
every month for a check and trust me
they’re going to stand there and wait
for you to write it and then the next
time you need something they’re going to
disappear so how do you deal with the
business partner bullies you make sure
there is a clear contract in place and
this is going to be a different type of
contract and say your employee contract
or your contract with your vendors or
contractors this one needs to stay very
clear what each of you are doing for the
business what your responsibilities are
what you’re bringing to the table and
what your promises are and you put a
timeline on that and if your business
partner isn’t staying true to his
promises then that contract is null and
void and the business goes back into
your name bully number four is your
sales bully there are different types of
people in sales you can have people who
are doing marketing for you such as
social media social influencers people
who are marketing your product on a
social media platform it could also be
an actual 1099 sales person whose job is
to go out there and obviously garner
more sales for your company so this is
what these bullies do because they see
that they’re bringing your company a
certain amount of sales they then in
turn start feeling entitled that they
they built your business and they’ve
brought you you know definitely sales
and and they’re still only getting you
know this much percentage and they feel
like they should have a higher
percentage or more of the company okay
let’s think about this okay so say who
is a company that has a sales person say
you’re a sales person at Nordstrom right
Nordstrom’s you’re the top sales person
in the biggest store in New York City
and you have the highest sales of anyone
in all of Nordstrom’s in all the country
we’re going to do you have a sit-down
with a CEO of Nordstrom’s and tell them
that since you’re his top sales person
you think that you deserve a higher
percentage or you should own part of the
company oh that’s absolutely ridiculous
so why is a sales person it’s a job
you’re you’re technically an employee
you’re getting paid you want more
commissions go sell more stuff that’s
plain and simple that’s just how it is
so when you have a sales bully in your
corner you obviously if there’s your
number one you want to keep them happy
so it’s important again to establish
in the beginning in the beginning of the
relationship here’s your commission
chart here is your potential growth and
this is where you cap you know if you’re
selling a hundred million dollars a year
and you’re at five percent and you want
to make twice as much you don’t ask for
ten percent you go and you sell two
hundred million dollars that’s the way
it works you make sure you have that
contract in place and you set realistic
goals and let them know where their cap
is so here are three ways to handle that
first of all you want to have a clear
compensation plan to where they see how
they can make more money on what the cap
is number two is reward your people
people do well with rewards it makes you
feel valuable and number three it’s okay
to make adjustments but make sure it
benefits your business and doesn’t hurt
your clients our number five and last
bully is your customer bully this is a
bully who can cause the most damage to
your business there’s two types of
customer bullies there’s a retail
customer bully and a wholesale customer
bully the retail customer tries to bully
you into deeper discounts free clothes
there they’re never satisfied they hate
your merchandise is cheap it doesn’t fit
well it washes terrible the colors not
the same as it was on their computer
monitor I mean there’s a million and one
excuses and they threaten things like
bad Yelp reviews negative social media
comments or even to go to the Better
Business Bureau
so with these customers is best to
explain that there’s a certain level of
respect that you have to have and if
they cross those boundaries you have to
decide what it’s worth what is it worth
for you to just make them happy and go
away because that’s ultimately what you
want is for them to zip it smile and go
away is it giving them a free pant is it
repairing something is it giving their
money back if it’s not going to hurt you
in the long run just make them happy and
go away because those will be your
biggest viruses I myself am a retail
customer as most of you are there are a
few companies that I really love their
policies I love how I treated when I
call them when I return things I’m super
impressed with the children’s place I
want to order two shirt they sent me
something nine months for my
four-year-old they didn’t even ask for
the product back they just sent me out a
shirt that was the proper size and they
said give that shirt away as a gift
I thought that was awesome maybe happy I
will always shop at Children’s Place
hmmm easiest place to return things they
never bother you it’s super simple they
don’t even ask you any questions you
fill out a form you send it you get your
money back or or they send you the new
product Nordstrom’s also has a great 90
day return policy
my favorite good for people like me who
I don’t like to try things on I just buy
a bunch of crap throw in the bag and go
home and see what fit but it’s also a
downfall when you have the customers who
just return things after they’ve worn it
for 90 days and they want their money
back so they can buy something new so
the give and take you got to decide what
type of customer service what kind of a
customer refund policy is best for you
the second type of customer boy is a
wholesale customer boy this is a
wholesale customer that come with you to
buy goods that are already made and then
they go and turn and resell it on
whatever their platform is so I had this
customer one time a swimwear company out
of California they were ordering
wholesale from me for about a good year
and it was called private label so I put
their label on my goods and after about
a year working together you know we did
about a million dollars in orders
without a contract they try to bully me
into cheaper pricing well I manufacture
in LA I’m a designer the goods are
coming to your door ready to go I mill
all of my fabrics locally I pay for
wages there’s all these components I go
into how my pricing works and it just
wasn’t good enough for them they wanted
me to give them an additional 30% off
which was basically my profit margin so
I would be essentially working for free
well they didn’t like my no answer they
basically kept all of my samples and
ended up knocking them off in China and
Dubai and they strung me along for three
months and then at the end of the three
months lo and behold I go to their
website and there’s my entire collection
available for purchase and I had not
made one stitch of the merchandise
nor did I profit from any of it in fact
it was one of the biggest lessons I
learned in my life and although I took a
hard hit I have learned a valuable
lesson how to deal with a wholesale
bully now that mistake cost me about
five hundred thousand dollars and four
years in court so I hope that you listen
to this and learn from what I’m telling
you and I’m going to just stress this
probably in every single stinking video
and that’s contract contract
pract so there’s no gray area people in
business are not your friends you should
be friends with them after you have a
contract and you can be friendly with
them but without those clear defined
rules in place you leave a lot of room
for gray area and a loss that’s this
week’s episode on value payment so if
your bully I’m coming for you
you ready I got this suggested comment
below I want to hear your bully stories
don’t forget to subscribe to value
payment because we want to get to 1 million subscribers
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