Will She Replace Lori Grenier on Shark Tank? Her Designs Have Sold Brought In Over $1,000,000,000 In Revenue with Tracy Hazzard of HazzDesign

Tracy Hazzard

Summary:
In Episode #246 Nathan interviews Tracy Hazzard, CEO of Hazz Design. Tracy is the co-designer of over 250 products, generating over $1 billion at retail. She also co-hosts the WTFFF?! Podcast, and writes for Inc magazine. Listen as Nathan and Tracy talk about her wildly successful design business, the ins and outs of starting a podcast, and just how the profits from an office chair are broken down.

Famous 5

  • Favorite Book? – Rembrandts in the Attic
  • What CEO do you follow? — Ken Courtright
  • What is your favorite online tool?— Get Pocket
  • Do you get 8 hours of sleep?— Absolutely not! I got two copies of Thrive for Christmas
  • If you could let your 20 year old self know one thing, what would it be?— Recognise the power of not having to do everything yourself. Team up with experts.

Time Stamped Show Notes:

  • 01:00 – Nathan’s introduction
  • 01:44 – Welcoming Tracy to the show
  • 01:46 – What came first?
  • 02:00 – Tracy worked for two of the world’s largest design companies from ‘92
  • 02:50 – Having a great CV helped her to strike out on her own
  • 03:20 – Won an IP battle… but lost money
  • 03:58 – Created Hazz Design as a design consulting business
  • 04:45 – Tracy has helped launch over 253 retail products
  • 04:50 – Those products generated $758,457,260 of client sales
  • 04:55 – Tracy and her team have racked up over 98,688 design hours
  • 05:30 – ‘Platinum record’ product is the Metrex office chair at Costco
  • 06:00 – Received a royalty of 2-3% on chair sales
  • 06:30 – Charge a monthly retainer to a client – $10-20,000 per month
  • 08:30 – Breaking down the Metrex chair, which retails for around $99
  • 08:55 – Chair costs: $50 to build; $10 to transport; $2 design royalty; $8 sales royalty
  • 09:56 – From Costco’s perspective: profit per chair around $29 gross
  • 11:22 – Metrex sales from 2010 to date – around 1 million units; $1 million profit
  • 12:20 – Their business model: fees cover costs; royalties on a product line generate profits
  • 13:16 – “Ghost design” – why Tracy designs for known brands
  • 14:00 – 86% of their designs have sold successfully in the last 10 years
  • 14:55 – Tracy and her husband run the business together
  • 15:15 – Total 2015 revenue: $500,000
  • 15:30 – Currently investing in brand building: WTFFF?! is a podcast on 3D printing
  • 16:24 – 30,000 total downloads per month
  • 16:40 – Costs around $200 per episode to produce
  • 17:40 – Landed first sponsor for $4,000 per month
  • 20:40 – Just started writing for Inc in January – recent article hit 15,000 views
  • 23:50 – Famous Five

3 Key Points:

  1. You don’t have to do everything yourself. Team up with consultants, experts and mentors to be more effective.
  2. Invest in brand building by educating people about your area of expertise.
  3. Working for a recognized company gives you a pedigree and contacts to strike out on your own.

Resources Mentioned:

  • Freshbooks – The site Nathan uses to manage his invoices and accounts.
  • Host Gator – The site Nathan uses to buy his domain names and hosting for cheapest price possible.
  • Leadpages – The drag and drop tool Nathan uses to quickly create his webinar landing pages which convert at 35%+
  • Audible – Nathan uses Audible when he’s driving from Austin to San Antonio (1.5 hour drive) to listen to audio books.