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I recently had the opportunity to spend some time with Bill Yeargin at the Correct Craft factory down in Orlando. While I was there, he provided me with answers to some questions that I had, and some of the ones that other members of this site had come up with. I find his answers quite interesting. I have always liked the way Correct Craft has been run, but over the past year, I really think that they've stepped it up a notch. Thank you to Bill Yeargin for taking the time to answer these questions! Jeff Carroll:
September 14 will mark one year since you became Correct Craft President and CEO. Now that you have had a chance to settle in, what are some of your general thoughts on Correct Craft, the company’s values, the employees, and the boats that are being produced?
Bill Yeargin:
Wow – almost a year already? Time has gone fast!
Jeff, since I was a kid I have highly respected Correct Craft. I used to admire the Ski Nautiques on the lakes in South Florida where I grew up. It is an honor for me to now be part of the Nautique team.
I am happy that your first question would include asking my thoughts on our company’s values. You don’t have to dig very deep to know that Correct Craft has wonderful Christian values and those values are consistent with mine. Soon after arriving at Correct Craft I started a voluntary weekly Bible study which I have the privilege to personally teach. This weekly meeting started small but we now have about 60 people attend each week. Additionally, we organized a mission trip to Mexico this past summer with 21 employees to build a house for a needy family. Organizational values are great but I also believe it is important that we do our best to personally live out our values.
We already have employees excited about doing a missions project again next year. Actually the employees at Correct Craft are incredible and not just because they built the house in Mexico. We have hundreds of very loyal people working very hard at Correct Craft who truly go above and beyond every day.
We do work very hard to produce great boats but we will never be satisfied. It is important to me that we maintain a culture of continual improvement. We want to provide our customers with awesome boats and also the knowledge that we are tirelessly working to make them even better!
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Jeff Carroll:
Do you water ski? Do you wakeboard?
Bill Yeargin:
With two teenage daughters I tend to spend more time driving the boat than I do behind the boat. My daughters wakeboard, wake surf, wake skate, ski a little and tube. We live on a lake in the Orlando area so if I get home before dark we are out on the water. In the last 4 months we have put over 150 hours on our 211.
Personally, I wakeboard, wake surf, wake skate and occasionally ski. My preference is to wake skate. Even though I spend most of my time in the boat driving for my daughters and their friends I still manage to get behind the boat myself a couple of times a week.
I know of no better way to spend recreational time with my family than on our Nautique. When we are in our boat with family or friends we always have a blast.
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Jeff Carroll:
One of your books, Yeargin on Management, touches on a number of key management objectives, and how business leaders can achieve those objectives. Do the same principles apply at a large factory like Correct Craft? How is the implementation different?
Bill Yeargin:
Prior to joining the Correct Craft team I spent a fair bit of time traveling around the world speaking at conferences on management and leadership. I also wrote several management/leadership columns and Yeargin on Management is a compilation of over 100 of those columns.
The principles that I wrote and spoke about do apply directly to Correct Craft, or any other company for that matter. Implementation may be different based on the type of company but general principles like integrity, treating people well, and trying to think big apply to all organizations.
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Jeff Carroll:
You recently instituted an extensive employee development program at Correct Craft. Has that been well-received by the employees? What benefit do you see in this for the company? How will this benefit Correct Craft’s customers?
Bill Yeargin:
Jeff, I am a big believer in employee development. Most employees get excited about it too. I believe we should not only give people skills that help them today in their job but also try to give them skills they can use for a lifetime. For example, one of the programs we have instituted is a voluntary course that allows employees to attend classes over six Saturdays. It gives them skills they can use both at and away from work, it helps us identify people who are really committed to improve, and it makes them more valuable to Correct Craft which allows us to pay those employees more. It is a “win-win” for everyone. My goal is to help employees develop skills that will not only benefit them while they are at Correct Craft but also the rest of their lives.
Correct Craft’s customers will also significantly benefit from our employee development emphasis. We are already the highest rated company in our industry for customer satisfaction; as we develop our employees it will obviously make them better at doing their jobs which will have a directly positive impact on our customers’ further enjoyment of their boat.
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Jeff Carroll:
Correct Craft has been the recipient of the JD Power award for highest customer satisfaction in the ski/wakeboard boat segment for the past five years. Obviously this is a great achievement, but JD Power awards always seem to have skeptics. What do you say to people who believe these awards have little value, and are bought, not earned?
Bill Yeargin:
First of all those of us who work at Correct Craft know a large portion of the credit for this award goes to our incredible group of dealers. They are key to the fact that we have been awarded this honor five times in a row and we are grateful for all they do.
Many times people have pre-determined notions about what they believe and no amount of outside evidence is going to change their mind. I believe this is true of those who downplay the fact that JD Power has surveyed actual boat buyers and rated us highest in customer service five times in a row. Many times it is easier to discredit the evidence than it is to reconsider a position, especially if you have an economic interest in discrediting the evidence.
What is truly significant about this award is that we have been awarded it five years in a row. Companies have good and bad years but five straight years of being highest rated in customer service – that is quite an accomplishment. We also understand how incredibly hard it is to sustain such an accomplishment when you have companies working REALLY hard to dethrone you.
However, even though we are happy to be a five time winner – we don’t base our value on any award – we base our value on doing the right thing for each individual customer and if at the end of the year it results in an award – well, that’s great too.
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Jeff Carroll:
What is Correct Craft’s overall target market, and how does the target market differ among specific boat models?
Bill Yeargin:
I guess the expected answer would be wakeboarders, skiers, etc., but I see it as much broader than that. Our target market is people who enjoy having fun. It obviously includes people who like spending exciting time with their family and friends. Whether I am enjoying my Nautique with family and friends or getting a little competitive with some guys after work it is still the same thing – having fun. Providing a quality boat you can count on to perform better than any other boat so our customers can have a ton of fun with their friends and family, that’s what we do.
Regarding our models, as you know we have the Ski, Air, and Crossover lanes. Ski and Air boats are built with specific users in mind, the crossover boats are built for those users who may want to enjoy big wake activities with their friends/families and still be able to get in a competitive slalom run.
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Jeff Carroll:
Correct Craft has always prided itself on quality and innovation. Do you feel that other boat manufacturers are closing the gap in these areas? What qualities of a Correct Craft make it stand out from other watersports boats?
Bill Yeargin:
When you look back over the years Correct Craft has clearly been the innovation leader in our industry. The list of industry innovations that first appeared in a Nautique is long. We proved it once again this year with the industry’s only GPS based speed control system. Which, by the way, everyone who has used it has loved it. We actually have heard of customers talk about trading in their current boat just to get this new feature which is only being offered on '08 Nautiques. Watch and see; everyone will eventually be using a GPS based system – it is just one example of Correct Craft leading the way in innovation. I don’t want to speak badly about any of our competitors, they are made up of good people who work hard; however, when it comes to innovation the record speaks for itself.
Every boat company is going to try to “spin” things to make their product look the best but at Correct Craft we are willing to “put our money where our mouth is.” We stand behind our product with the industry’s best warranty, hands down. Not only does that demonstrate the confidence we have in our boats but it makes the five year total cost of ownership of a Nautique less than our competitors. Quality and value – a great combination.
By the way, within the next few weeks you are going to see us start something else that will be an industry first. I will leave it at that for now!
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Jeff Carroll:
There have been a number of recent personnel changes in Correct Craft’s upper management, including a new VP of Operations and a National Sales Manager. What can you tell us about those changes?
Bill Yeargin:
We have a very strong management team at Correct Craft. Since I arrived I have added three key players, all of whom are having a huge impact.
I asked Greg Meloon to join our team in Orlando as Product Manager shortly after I joined Correct Craft. Greg had worked in our Midwest service center for several years and was doing a great job there. He impressed me in a couple of early meetings and I originally asked him to come to Orlando for a temporary assignment. Once he was in Orlando I was really impressed with Greg’s work ethic, his talent and his knowledge of the Nautique product line. I quickly realized I wanted him to stay permanently and fortunately was able to convince him to join our corporate team. Greg is an exceptionally talented young man and everyone who has worked with him, both inside and outside of our organization, sees that too.
My second key hire was Mike Yauch, our National Sales Manager. Mike is also doing a fantastic job and has already had a big impact. He is a seasoned sales professional and has quickly earned the respect of our dealers as well as everyone else who has worked with him. Mike has big plans related to how we can support our dealers and that will obviously have an impact on our customers. The best getting even better, that’s our goal.
Finally, I hired Tim Gomez as our VP-Operations. Tim is a black belt six sigma practitioner and has two masters degrees in manufacturing, one from Cambridge University in England. Tim is a very talented individual and he too is having an incredibly positive impact. He is dramatically improving all of our manufacturing processes which will further increase the quality of our boats.
It is exciting to have managers the caliber of these guys join an already strong team. We have positioned our team to be able to do great things in the years to come.
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Jeff Carroll:
What is Correct Craft’s position on adding aftermarket accessories to their boats at the factory (like Titan towers, spinner racks, etc.)? Does this dilute the brand? Why not make these accessories under the Correct Craft name?
Bill Yeargin:
As you know we do offer accessories such as stereos, towers, speed control and others that we do not manufacturer. We do not believe it dilutes our brand. It is really impossible to manufacture everything ourselves so the key for us is to partner with others who will not compromise the Nautique quality. We want to make sure our customers have the best possible experience on the water and we believe we provide that.
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Jeff Carroll:
Are you able to tell us about any new features on the 2008 boats? When will your website be updated with 2008 information?
Bill Yeargin:
We have a lot of positive changes for 08! We are offering the industry’s only GPS based speed control system, we have exciting new graphics, new tower options and a myriad of other positive model year enhancements.
We also introduced our new 230 model wakeboard boat for 08. This boat has been raved about by our athletes. Shaun Murray was testing it for us and called me one morning to rave about how he and his athlete friends loved this boat. Many believe it is the best wakeboard boat ever built.
Finally, we are introducing a new deck on our 210 model. This deck offers more space with comfortable wrap around seating. It too is already getting rave reviews.
The 2008 pictures will be up on the website a fair bit sooner than prior years. Look for them soon!
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Jeff Carroll:
People often ask about the availability of colored decks on Correct Craft’s boats. Why does Correct Craft not offer colored decks? Is there a possibility that this might change in the future?
Bill Yeargin:
Jeff, as you know Correct Craft did offer color decks during the 2001 – 2003 model years. There were several reasons why it was stopped but I will tell you that our team is considering all options for our boats, including colored decks. Keep an eye out, we may surprise you with a few things.
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Jeff Carroll:
As Correct Craft adds new models to the lineup, do you see current models (even recent additions like the 220) as having a questionable future as production models? Will the 236 or the 230 make the 220 obsolete?
Bill Yeargin:
First of all I do not think the 230 or 236 will make the 220 obsolete. The 220 is a great boat and fits perfectly for someone who is looking for an awesome 22’ wakeboard boat. As you know the 230 and 236 are bigger boats that hold more people and we believe they appeal to a slightly different market than the 220.
In general we understand that our product line will continue to evolve and at times we will have to replace models. We have several projects in the works and we will be constantly trying to improve what we do.
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Jeff Carroll:
In the past, Correct Craft has required dealers to not sell any other brand of tournament inboards. Recently though, some Correct Craft dealers have started selling multiple brands. How will CC separate themselves from the rest of the crowd, especially if they’re going to be side-by-side? How does Correct Craft plan to help their dealers promote Correct Crafts as the premier watersports boat?
Bill Yeargin:
We do have some dealers that carry other brands and we are not afraid to compete side by side with anyone. In fact we know that when we compete side by side, we win!
Mike Yauch our new National Sales Manager is working on several programs to help support and develop our dealers. Fortunately for Correct Craft we are blessed to have the industry’s best dealer network. You cannot win the awards we have won without incredible dealers out working very hard to please every customer. As much as we enjoy receiving the awards we also understand that the dealers play a really big part in our success. Therefore we certainly want to support them!
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Jeff Carroll:
Now that the new factory is up and running, it is clear that Correct Craft will be producing boats in higher quantities. What strategy is Correct Craft using to sell those additional units?
Bill Yeargin:
Regarding the new factory most experts have told me to expect a two year transition when moving to a new plant, especially after 82 years. I believe we are well ahead of this two year expectation.
Regarding additional capacity the new plant may provide us additional capacity and we are working hard to help our current dealers maximize their potential in their markets. We are also looking for dealers in white space areas who would like to carry Nautiques. (Fortunately, we are constantly being contacted by dealers who want to carry our brand.) We are also expanding our efforts in the international arena. Finally, we are in the process of implementing a new strategic marketing plan which will have a big impact on the way we market Nautiques in the future. Growth is exciting and we are anxious to begin implementing our plans.
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Jeff Carroll:
Does Correct Craft plan to begin publishing the Nautique News magazine again? Does Correct Craft plan to bring back the Nautique Owners Association?
Bill Yeargin:
As part of our new marketing plan we do want to do a better job communicating with our customers and prospects and you will see something new in this area very soon. I doubt we will publish an actual printed document but we would like to do more electronically.
We are considering some ideas related to the Nautique Owners Association (NOA) in our new marketing plan. No promises yet but we are thinking about what we can do in this area.
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Jeff Carroll:
As prices for good watersports boats continue to climb, some people are being pushed out of the market. Is there a plan to attempt to gain back some of those customers through price point boats such as again producing the previous model 210, competing with Malibu’s V-Ride and MasterCraft’s X1? What about the Ski Nautique 176?
Bill Yeargin:
We are sensitive to the increasing prices of boats. We want everyone to be able to enjoy a Nautique! However, a high percentage of a boat’s cost is in materials and raw material cost has continued to climb, especially petro based materials. We won’t compromise our boats by putting in less expensive materials to save costs. It is important that Nautiques continue to represents the best you can own in a towboat!
As we continue to transition into our new plant we will soon have additional capacity. We are working to determine the best way to allocate that capacity and a smaller boat has been considered. However, if we do a smaller boat it still has to maintain our reputation as the highest quality boat you can own.
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Jeff Carroll:
People love special edition boats like the Silver Nautique. Can you tell us anything about Correct Craft’s plans for the 50th anniversary of the Ski Nautique?
Bill Yeargin:
I cannot release any information on that yet other than to tell you we will do something exciting – be on the lookout!
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Jeff Carroll:
Other top watersports boat manufacturers have started marketing open-bow tournament inboards as their flagship three-event boats. Does Correct Craft plan to continue producing the closed-bow Ski Nautique 196 into the foreseeable future?
Bill Yeargin:
Jeff, all of our boats are subject to update at some point. However, we understand how much skiers love the 196 and how important it is to them. Any updates of the 196, or any other boat for that matter, would only be to make the boat better. We have some exciting things happening in our research and development department for all boats across our model offering. We have a great past but the future looks great too.
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Jeff Carroll:
In the past, Correct Craft has produced a variety of boats not made specifically for towed watersports. Should customers expect to see Correct Craft branch out in that way again in the future?
Bill Yeargin:
Yes, possibly. As we continue the transition into our new plant we will be developing additional capacity. We will be looking at many different ways to use that capacity and offering boats that are not specifically designed for towing is a possibility. How we brand those boats would be important but Correct Craft has an incredible heritage of building all kinds of great boats. My next door neighbor has a Martinique built by Correct Craft; that was a great boat.
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Jeff Carroll:
As wakeboard boats continue to grow in size and weight, engine power becomes more and more important. I know that for 2008, PCM has made some changes to their existing engines so that they produce more power. Are there any plans by Correct Craft or PCM to offer additional engine choices in the future, such as other big block options or even a diesel?
Bill Yeargin:
Jeff, I am glad you asked about engines. We are very proud to be closely associated with PCM. They are a great company, have great leadership and have been serving us and our customers well for many years. We were excited when they were awarded their second straight JD Power award earlier this year. Their awards are a reflection of what a great job they do providing an awesome engine. We are happy to offer PCM in our boats.
Regarding engine options, our product development team is continually working on alternatives for our customers. We have considered big block options and continue to so some testing of a diesel engine.
Basically there are three issues when we look at engine alternatives; performance, space and price. We will not compromise the performance of a Nautique so any new engine must pass very stringent standards that are tested by our product development staff. We are continually looking at alternatives but, frankly, many times they do not meet our performance criteria. Secondly, many times storage space can be compromised with a bigger engine. Finally there is price. Most people don’t realize how much more expensive a diesel engine is in a boat. However, we will continue to explore possibilities and when we have something we are comfortable bringing to market, we will do it quickly.
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Jeff Carroll:
Does PCM plan to start using catalytic converters on their engines in the future?
Bill Yeargin:
Yes, we will have engines with catalytic convertors available by January of 2008. California is requiring the new engines but they will also be available in other states.
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Jeff Carroll:
Several other watersports boat manufacturers are currently offering boats outfitted for salt water use. Does Correct Craft have any plans to produce a boat specifically for use in salt water?
Bill Yeargin:
Jeff, as you know I came out of the salt water world and therefore believe it is an opportunity for us. However, we will not rush to produce a product that has problems. Others have had problems with this conversion and we want to avoid putting our customers through those problems. We want to make sure that when we sell saltwater Nautiques the purchasers of those boats can count on Nautique quality. As I have mentioned a couple times, Greg and his team in Product Development are working hard on several projects that I believe will excite our customers in years to come. However, you can be certain that when we come to market with new product, it will meet and exceed our customers’ expectations.
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Jeff Carroll:
How concerned is Correct Craft about rising gas prices affecting the watersports boat market in the future?
Bill Yeargin:
We are concerned about anything that keeps people from having fun in their Nautique. Specifically as it relates to gas prices, we would certainly like to see them lower; however, we also know that our boats with their PCM engines are the best in the industry when it comes to fuel consumption per hour. We would love to see cheaper fuel, but until that happens high fuel prices are just one of many reasons to own a Nautique.
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Jeff Carroll:
Is Correct Craft planning to increase the number of corporate-sponsored events in the future?
Bill Yeargin:
We are very proud to sponsor numerous events around the world. As you know, to just name a few, we sponsor the Wake Games, Wakeboard National Championships, the National and World Water-ski championships, the Moomba Masters and of course the crown jewel of all watersports events, The Masters. These are just a small sample of what we do at the corporate level, there are many more. Additionally we sponsor numerous other events through our regional service centers and dealers. I don’t know if anyone has actually ever counted them up but I suspect we sponsor more events than any of our competitors. We certainly sponsor more of the prestigious events than our competitors. Events have been an important part of our marketing and culture and will continue to be.
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Jeff Carroll:
Why is purchasing a Correct Craft a better choice than purchasing one of the other top watersports boat manufacturers’ boats?
Bill Yeargin:
Wow, where do I start? How much time do you have?
I guess if I have to narrow it down I would say there are four general reasons why we are better.
First of all I would have to say quality. Nautiques are known for being the highest quality boat on the water and we are willing to stand behind that reputation with what is by far the industry’s best warranty, five years. Additionally, I believe we have the highest quality dealers in our industry all of whom continually go above and beyond to satisfy our customers. Sure we have won a lot of awards for the incredibly high quality of our boats and service but we know at the end of the day it is all about taking care of individual customers. When you buy a Nautique you can be assured of getting the highest quality boat and service our industry offers. And, we are not satisfied – we may be the best but we will continue to get better!
Secondly, I would have to say performance. We have a ton of world records but frankly the most important thing for us is that our customers get the wow factor when they drive their new Nautique. Our salespeople tell me that when they get a prospect on the water in a Nautique they always get the sale. That is because of performance. We run our competitors boats and we know that we are the best. I challenge anyone reading this interview, if you are thinking of buying a new boat; it is worth your time to take a demo ride in a new Nautique. You won’t ever want to own anything else!
Thirdly, Nautiques are a better value. When you consider the cost of owning a boat over five years the Nautique will win, hands down. We have the industry’s best warranty (5 years) which when combined with our historically high resale value make the overall cost of owning a Nautique a lot less than people think. Plus how do you place a value on the reliability of a Nautique. By building the industry’s most reliable boat it allows our customers more time on the water; and as they say, that is priceless!
Finally, Nautiques are a lot of fun. Whether you are with your buddies on an early morning slalom run, hanging out with friends blasting the stereo and watching each other ride, or spending time with your family I know of no better way to have fun. The piece of mind of that comes with owning a Nautique makes it a lot easier to have that fun.
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Jeff Carroll:
What is Correct Craft currently doing to ensure value after the sale?
Bill Yeargin:
Jeff, I think the best thing we can do to ensure resale value is to continue building the industry’s best boat – and that is our plan. There are many people who want a Nautique but may not be able to afford a new one. We want to build our boats to stand the test of time, so when our customers are ready for a new Nautique they get a great price for their old one. Also, we know that we have the industry’s best dealers to service a pre-owned Nautique – that adds value too!
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Jeff Carroll:
How do you feel about websites such as PlanetNautique, where owners get together to discuss their boats? Are sites like this in any way beneficial to Correct Craft? How do you think PlanetNautique and similar sites could be improved?
Bill Yeargin:
Jeff, I love Planet Nautique. I check it out from time to time to see what people are saying. I appreciate your members and how loyal they are to Correct Craft. I think your site benefits Correct Craft by providing our customers an additional sense of Nautique community.
How could it be improved? Only allow people to say nice things about us!!
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Jeff Carroll:
Anything else you would like to share with our members?
Bill Yeargin:
I would just like to say thanks. Thanks for your business and thanks for being part of the Nautique family. We do appreciate you all.
Finally, if any PN member is in Orlando please stop by and see us. Dave Hendricks in our customer service department conducts tours a few times a week and we would love to have each of you join him. Information on the tours are available on our website, http://www.correctcraft.com. We hope to see you there soon!
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