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It has been roughly a year since our last interview with Correct Craft President/CEO Bill Yeargin. There continues to be significant change at Correct Craft, and Bill's comments below help shed some light on improvements at the factory, how the product line is progressing, and what we might see from Correct Craft in the future. It is always a pleasure to meet with Bill to discuss Correct Craft and the direction in which the company is heading. I hope you enjoy the results of this interview.- - - - -
Jeff Carroll:
How is it beneficial to the consumer for Correct Craft dealers to focus their attention on just their local area?
Bill Yeargin:
Ok Jeff, I see you are going to start this interview with an easy question!
Actually, I get this question a lot and there seems to be a lot of misunderstanding related to how the dealers operate. I am glad you asked.
Each of our dealers has an important area of responsibility and we highly encourage them to focus on that area.
Our goal at Correct Craft is to maintain the highest possible level of customer service (as reflected by our numerous awards including six JD Power awards). We believe the Nautique customer is better served when Nautique dealers focus on their specific areas of responsibility.
An important benefit to the Nautique customer related to dealers having an area of responsibility is that it provides them with a relationship at a local dealer who can service their Nautique. This relationship becomes particularly important during the summer season when everyone is using their boats and the dealers are very busy.
We are in the business of selling boats and want to do everything we can to promote Nautique sales. Additionally, we know that the happiest customers are those who have a local dealer who takes really good care of them. I cannot overstate how important it is to us that Nautique customers have an awesome experience with their Nautique. We hope that they will decide to spend a lifetime as part of the Nautique family and one important way we assure this is by having incredible dealers who go to great lengths to make sure their customers love living the Nautique life.
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Jeff Carroll:
As we all know, Correct Craft does not build trailers. Since dealers order trailers from several different manufacturers, it is difficult to keep quality (and the overall end-user trailer experience) consistent. Will Correct Craft ever consider building their own trailers or sourcing their trailers from one manufacturer?
Bill Yeargin:
As you probably know Correct Craft did previously build trailers. At some point before I arrived here the decision was made to stop building trailers. As I understand it the logic was that we should focus on what we do best which is to build boats. I have a hard time finding fault with that logic.
Currently we do have a friendly relationship with Ram-Lin trailers and believe they do a good job for us. Also, some of our dealers have relationships with local trailer companies who they believe service their customers well and can take into consideration regional requirements. Also, by using their local trailer company some of our dealers save their customers the freight cost of having their trailer shipped to them.
We are always open to doing things better and trailers are no exception. We will continue to look at everything we can to improve the Nautique life for our customers, including how we handle trailers.
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Jeff Carroll:
Will Correct Craft ever consider making Wetsounds or some other "long-throw" tower speakers available from the factory? While the Polks look and sound nice in the boat, there's nothing like a good Horn Loaded Compression Driver to get the sound out to the rider. What can you tell us about the changes to the factory stereo system in the 2009 Nautiques?
Bill Yeargin:
Jeff, our Product Development team is constantly looking for ways to improve our product and sound is no exception. Therefore, we have made several significant improvements to our sound system for 2009 that we believe the Nautique family will love.
Regarding your specific question about “long-throw speakers” or a “horn loaded compression driver”, we have tested these items and will continue to do so. At Nautique, as you would expect, we have a very extensive product development and testing process and we will not put anything on our boats without our Product Development and Management teams being very comfortable that they meet our standards. This gives the Nautique family comfort that they are always getting the best when they buy a Nautique.
Regarding specific improvements for the 09 Nautique sound systems – we are excited to share the following:
- We have included a new auxiliary input on the driver’s console as well as the one we previously had in the glove box near the head unit.
- We are now using new Polk MM speakers that are significantly improved in many ways.
- We have significantly upgraded the amplifiers in the ‘09 Nautiques more than doubling their maximum power
- We have relocated the sub-woofer into the cockpit to improve sound quality
- We are offering a tower speaker prep kit with amplifier options that is ready for the customer’s aftermarket speaker choice if they do decide to go with a “long-throw speaker” like the ones you asked about.
There are a lot of details related to these sound improvements and our dealers are happy to share more. However, the absolute best way to appreciate the changes for 09 is to stop by a Nautique dealer and get a demonstration. I believe the Nautique family will be as excited as we are about the sound improvements.
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Jeff Carroll:
I recently had the opportunity to spend some time at Correct Craft's World Headquarters in Orlando, and I noticed a number of changes on the production floor since my last visit. One set of changes that stood out in particular had to do with quality management. What can you tell us about the recent changes that Correct Craft has made in terms of improving product quality?
Bill Yeargin:
You were at our plant, Jeff? I didn’t notice… Just kidding Jeff, we enjoyed your visit as always, even if you do later post pictures of us on the water…
Ok, now to your question…
Actually we have so much going on in the area of quality that I am not sure where to start.
Our Nautique team believes we must be relentless in the pursuit of constantly improving our quality. Sure we have won a bunch of awards and are universally acknowledged as the quality leader in our industry, but that is not good enough. We want to be dramatically better – the best getting better, that’s what we say.
The first step to improving quality requires a paradigm shift. When you have won all the quality awards we have won it is very easy to be content but I will not allow us to be content. Sure we have the best quality in our industry but I tell our team we cannot become content by comparing ourselves to our industry, we need benchmarks that challenge us to do even better.
Part of this paradigm shift is why I hired Matt McGinnis last year to head our Quality Program. Matt was a Quality Engineer in the automotive industry. Besides extensive quality experience Matt is an ASQ Certified Quality Manager and also has an MBA. He has implemented processes at our company that will have a huge positive impact on our quality for years to come. And, by the way, Matt is also a water sports enthusiast who both wakeboards and skis, including bare footing. (He hasn’t got me bare footing yet but he is trying!)
When Matt came to Correct Craft we set out to do everything we could to make our quality even better. Part of this search for ways to improve led us to a foreign luxury automobile company who has a plant here in the US. We visited their plant and ended up embracing a new automated quality system that they were using. This new system has already helped us tremendously.
We have also implemented a significant employee development program with numerous training programs and we have several of our quality team working on Lean Six Sigma certification. We are making an unrelenting effort to provide our employees the tools they need to improve.
These are just two examples of ways we are working on making quality even better; there are many more. Our team is making unprecedented investments in our quality program to ensure we continue to exceed the expectations of our customers. We will continue to do everything we can to make our quality even better but we will never be satisfied.
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Jeff Carroll:
While we're on the subject of the factory itself, I also noticed much more streamlined production areas and better flow of materials. Do you have some measure of how those changes have affected efficiency within the factory?
Bill Yeargin:
Last year we embarked on a significant Lean Six Sigma program at Correct Craft. This program included significant investments in our employees to help them improve.
Overall, the Lean Six Sigma program has been a huge success. Led by our Director of Operations, Sean Marrero, our team has not only become more efficient but has also significantly improved Nautique quality as I mentioned in the previous question.
To your specific question, we do measure the results of the changes we make and know exactly how the changes have impacted efficiency. We also know that operating more efficiently allows us to be even more competitive in the market place.
We have had numerous representatives from other boat companies visit our plant the past few months to see for themselves the improvements we have made. We enjoy that attention and their praise but, frankly, it means nothing to us compared to the enjoyment we get from being able to provide our Nautique customers with the world’s best boat.
We know that when we improve it benefits our customers. That is what makes us happy.
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Jeff Carroll:
People have been excited to see the return of colored decks on some models. Will all models have a color option above the rub rail this year? Are there new colors available for 2009?
Bill Yeargin:
Jeff, one of the things that I heard most often after coming to Correct Craft was that our customers wanted color again on the decks. We went right to work on that and we are happy to offer color on decks on all of our 09 models except the 211.
We are also happy to offer a new color this year, Fury Red. This color is very popular already and a high percentage of the ‘09s coming off our production line so far have this color on part or all of the boat.
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Jeff Carroll:
There have been some changes in ownership of Correct Craft over the past year. What can you tell us about that? Will Correct Craft ever become publicly held, employee-owned, etc.?
Bill Yeargin:
As you know, Jeff, Correct Craft was founded in 1925 by W.C. Meloon. The Meloon family kept a majority of the stock in the company for over 80 years which is an incredible accomplishment and a tribute to their family.
Beginning several years ago various members of the Meloon family, for various reasons, began selling their stock to a gentleman who served on our board, Daryle Doden. Daryle did not pursue any of these family members but as they each decided to sell their stock in Correct Craft they all felt comfortable that he would maintain the values for which the company was so well known.
Earlier this year after buying out a few more Meloon family members, who asked him to acquire their stock, Daryle gained ownership control of Correct Craft and now owns over 50% of our company.
Though Daryle now controls the company as a majority owner we continue to be very proud of our heritage and the Meloon family’s role getting us to where we are today. We embrace our past as we look forward to our future.
In fact, we still have several Meloons working at Correct Craft today and they all contribute significantly to our success on a daily basis. Ralph Meloon, son of our founder (W.C.), will be 91 this year and still shows up for work every day encouraging everyone he meets. Correct Craft’s Board Chairman is our founder’s grandson, Ken Meloon. Greg Meloon is our VP of Product Development and Ken’s son-in-law, Thomas, runs our Eastern US dealer support center. We also have other family members who work in the plant including Eric in Service Parts and Dusty in Product Development. We appreciate what these Meloon family members do each day to help our team and our customers.
Regarding Daryle, he shares the values that have not only been historically important to Correct Craft but also continue to be important to me and our team today. The family members who sold their stock to Daryle also believed that he would embrace the values that are so important to all of us at Correct Craft.
On a more personal note I am occasionally asked what I think of Daryle and how well we work together. I am happy to say that Daryle is one of the wisest men I have ever met and I am thrilled to be working with him. He constantly challenges me while at the same time offering terrific counsel. Daryle is very committed to Correct Craft, our values, and our industry. He is pushing us to do everything we can to improve.
Jeff, we are positioning Correct Craft to be successful for another 83 years and I am very excited about our future.
Regarding your specific question about employee or public ownership, we have no plans related to either of those options.
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Jeff Carroll:
Is there a plan to increase the amount of factory ballast in Correct Craft's wakeboard boats?
Bill Yeargin:
Jeff, fortunately, we already have the industry’s best wake with the ballast already being offered.
One of Nautique’s core building practices is to provide our customers with basic flotation as defined by the USCG on all models even though it is only required by the USCG on boats less than twenty feet in length. We are happy to be able to continue doing that, even though it does reduce the amount of space for additional ballast.
Our design and engineering teams strive to provide an equal balance of the Nautique “feel”, the desired wake performance, safety, and first class driving performance. More added water weight can be achieved by removing the foam in the floors and filling it with ballast but it is not the Nautique way of building superior boats.
However, as I have mentioned, we are always looking for ways to improve and if there is a way we can improve in all of these categories we will do it.
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Jeff Carroll:
Correct Craft has started offering several new tower choices. While the new ones are certainly innovative and a fresh look for Nautiques, some people prefer the standard Flight Control Tower. Will the Flight Control Tower (1) continue to be available in the future, or is there a plan to phase it out?
Bill Yeargin:
We understand not everyone likes the same thing and we are very happy to offer some tower alternatives.
We currently have no plans to phase out the FCT1 tower.
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Jeff Carroll:
High gas prices have caused a surge in interest in alternative fuels and environmental awareness. Does Correct Craft have any plans for an alternative fuel boat in the future?
Bill Yeargin:
Our engineering team, in partnership with PCM, is always researching new and potentially better power solutions. The 2009 engine line-up is the most powerful and efficient ever offered by Nautique. Specifically our new 409 Catanium engine has received incredible reviews for both its environmental improvement and performance.
I know that many people have been focused on fuel prices the past few months and we believe the efficiency of our engines help Nautique owners when fuel prices are rising. We have done the math and many people would be surprised how little extra it costs to run the efficient Nautique engines with higher fuel prices, especially compared to other entertainment alternatives.
Regarding the specific question on alternative fuels and environmental awareness, our team (in conjunction with PCM) pays close attention to emerging technologies and will continue to look for alternatives to decrease fuel use, minimize environmental impact and maximize the fun and excitement that comes with the Nautique life.
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Jeff Carroll:
Can we expect to see any new models in 2009? If so, what is special about them? How are they uniquely Nautique?
Bill Yeargin:
Nautique has introduced the all new Crossover 216V for the 2009 model year to our dealers with rave reviews. The 216V will be arriving in our dealers’ showrooms this fall.
The 211 established the crossover, family market of v-drive boats and the 216V is the next generation. There are so many new features on this boat that you need to see it in person. Stop by your local dealer to see it - We believe you will really like it.
Our Product Development team is working hard to improve all of our boats. We have developed and implemented a long term product development plan that we are working on and I believe the Nautique family will be very happy with what we bring to them over the next few years.
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Jeff Carroll:
Recently, there has been news of some changes at Southeast Correct Craft in Orlando. Are you able to shed some light on the situation? What should Orlando-area residents expect in terms of a new dealership?
Bill Yeargin:
There is a new dealer in Orlando and we will be making a public announcement regarding this new dealer soon.
We are very committed to the residents of Orlando (our home town) and will do everything we can to make sure they have a great sales and service experience. Also, there is an exciting long-term plan for the Orlando market that we think our Nautique family will find very exciting.
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Jeff Carroll:
Over the past year and a half Correct Craft has added many new dealers. Do you plan to add more and how do you choose these new dealers?
Bill Yeargin:
Over the past year and a half we have added close to 30 new Nautique dealers, most of them here in the US.
We are very fortunate to have dealers seeking us wanting to become part of the Nautique family. Our biggest issue is making sure that they share our approach to customer service and satisfaction as well as share our passion for ensuring our Nautique family enjoys the Nautique life.
We consider our current dealers one of our greatest assets and only want to add new dealers who we believe will meet the high standards set by our current dealers.
Finally, yes we do still have some areas of the country where we would be willing to set up new dealerships. But, only if they meet our high Nautique standards.
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Jeff Carroll:
Scott Byerly's Super Air Nautique 210 ICON EDITION has been making the rounds this summer, and people really love it! Will there be other ICON EDITION boats in the future for other prominent Nautique athletes? Will these boats ever be offered to the public?
Bill Yeargin:
I am not prepared to make an announcement right now on this topic but rest very assured that we have noticed the overwhelmingly positive response to Scott’s new boat.
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Jeff Carroll:
Over the past couple of years, Correct Craft has significantly improved their communication with current and potential customers. You started your CEO Blog, the Nautique Insider, a new Nautique Nation newsletter and a new and improved website. Many of us are enjoying this new openness, can we expect it to continue and do you have anything else planned in this area?
Bill Yeargin:
Jeff, it is very important to our team that we keep both our current and future Nautique enthusiasts updated regarding what is happening with us.
Last year I started writing the industry’s first CEO Blog which, as you mentioned, we call the Nautique Insider. I get a lot of positive comments about the Blog and am glad people enjoy it. We send out an email every time there is a new posting to the Nautique Insider and if your members are interested they can review the Blog entries or sign up to get the notice of new entries at http://www.nautiques.com/blog.
This year Adam Lodge and his team in Marketing started a new monthly newsletter that we are calling the Nautique Nation. It is a great newsletter that helps keep people up-to-date on what we are doing. Planet Nautique members can view this newsletter or sign up to get it at http://www.nautiques.com/nautiquenation.
We also have a Team Nautique blog that is updated by our Team Manager Kevin Durham. This blog is meant to keep everyone updated with our Team Nautique athletes and events. It can be viewed by clicking on the “Blog” link at http://www.teamnautique.com.
These are just a few of the things we are doing to stay in touch with the Nautique family. Watch for more new things to come!
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Jeff Carroll:
What is your perception of websites like PlanetNautique.com, WakeWorld.com, etc.? Does Correct Craft derive any value from the information available on these websites?
Bill Yeargin:
I think the discussion boards provide a great service for our customers. We are happy to have a friendly relationship with Planet Nautique and others but also understand the value in them being independent.
Our team does review the sites and we try to learn from the items being discussed.
Sometimes the discussion boards also give a voice to people who claim to have good information when they actually don’t. Our position is that we cannot address every time this happens so we stay quiet even though we would sometimes like to respond. Fortunately, many times someone with good information will add balance or correct the direction of the discussion even if we do not respond.
However, overall, we think the discussion boards are a great tool for the Nautique family.
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Jeff Carroll:Does Bill Yeargin live the Nautique life?
Bill Yeargin:
Absolutely!!
I am frequently out on my family’s Nautique (210TE) with my family and friends. I spend most of my boat time driving for my daughters and their friends but I also love to wake skate.
I am also happy to enjoy the Nautique life with my co-workers at Correct Craft. Our management team has a blast going out on the lake for the evening after a hard work day. Not long ago I had about 30 members of our team to my house for an afternoon on the lake enjoying our Nautiques.
I think it is important for those who are running a boating company to live the life they are selling. It makes us better at our jobs if we are living the Nautique life. And we love it!
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Jeff Carroll:
Anything else you would like to share with our members?
Bill Yeargin:
Jeff, I appreciate the opportunity to communicate directly with the PlanetNautique members through this interview. I also appreciate the time you put into developing these questions, Jeff.
I would like to thank Planet Nautique members for their loyalty to the Nautique life.
I also would like for them to know that we are doing everything we can to build on our past success in an effort to validate their trust in us. Our team has a great Strategic Plan that we are working on that will bring significant improvement to every area of our company.
While we are very happy with our past successes we are also incredibly committed to improvement. We enjoy looking back to occasionally celebrate but what really excites us is preparing for the future.
I hope you and the PlanetNautique members continue to enjoy the Nautique life!
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Bill Yeargin has been Correct Craft's President and CEO since September 14, 2006.
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