Tweet
Recently, I had the chance to ask Bill Yeargin some of the questions that members of PlanetNautique had submitted over the past month or so. For those of you who have not had the pleasure of meeting Bill, he is truly an amazing person. He's very down-to-earth and easy to talk with, and he certainly knows how to run a company. His unique style and intelligent ideas have not only gotten Correct Craft through some tough times in the marine industry lately, but they have allowed the company to continue to improve in many areas. I am excited about the future of Correct Craft, and Bill is the perfect leader!Below you'll find the answers to a good number of the questions that you as members submitted. You'll also find some questions that I added in. Enjoy!
JEFF CARROLL:
September 14 marked the end of your fourth year as the President and CEO of Correct Craft. Have the past four years been what you expected?
BILL YEARGIN:
Jeff, it is hard to believe it has been four years since I came to Correct Craft. It has been a tumultuous four years on many levels but also a very energizing and rewarding four years. I know I am biased but I believe we have significantly improved our company in every area during this time.
The improvements we have made all start with our team. Again, I know I am biased, but I believe we clearly have the best team in the boating industry. Greg Meloon’s great grandfather founded Correct Craft and now Greg leads our product development team with the incredible Meloon family commitment to innovation, performance, and quality. Matt McGinnis leads our production team with leading edge manufacturing and quality techniques that stand out as the best in our industry. There are many other key people who are also very talented and play an important role in making our company what it is today and I am very proud of them all.
During the past four years we have received a lot of recognition for our achievements. A couple years ago one respected industry magazine said that Correct Craft was on “an aggressive improvement path the likes of which the marine industry has never seen.” We not only extended our streak of JD Power wins to seven but we have also won many other awards for our product, marketing, green initiatives, family focus and recently the MACF Manufacturer of the Year. Again, this is all because of an incredible team, I really play a very small role.
I mentioned some of the awards we have won and while we enjoy winning them, the most satisfying part of what we do (by far) is making our customers happy. I regularly call retail customers who have bought a Nautique and I cannot overstate how much these new Nautique owners love their boats. Hearing the excitement and pleasure our customers are receiving from being part of the Nautique family makes our team very happy!
JEFF CARROLL:
Since you became a part of Correct Craft, the marine industry has seen economic changes unlike anything it has ever seen before. Correct Craft seems to have handled those changes better than most in the industry. Were you ever nervous about Correct Craft’s ability to ride out the economic crisis?
BILL YEARGIN:
Jeff, you are right, the global economic crisis has impacted the boating industry like few other industries. The boating industry saw a nearly 80% drop in boat manufacturing during 2009 and significant drops in the retail market in both 2009 and again in 2010, on top of 2009’s decline. While we were not exempt from these global forces, every indication I have tells me that we have been able to ride out the storm as well or better than anyone else.
While the storm was rough and I knew we would need to make significant and speedy changes, I was never worried about our ability to ride it out. Our company is very strong financially and we have an incredibly talented team; even in the darkest moments, I knew we would be OK.
JEFF CARROLL:
How drastically did you have to change the overall course of the company during the past two years?
BILL YEARGIN:
That’s a tough question Jeff, for a couple reasons.
First, I am a change agent and always want to be focusing on improvement. Continuous improvement is an important part of our culture and we will always be looking for ways to get better, whether the economy is good or bad. Our commitment to our customers, our brand, and our values drives our desire to continually improve.
Secondly, the global recession forced us to speed up the improvements we planned to make anyway. We have made a lot of improvements to our company and I guess it is hard for me to say what was specifically done because of the economy.
Jeff, I can tell you one gut wrenching part of dealing with the global recession was when we had to reduce our staff. The thought of letting someone go from our team keeps me up at night. Because of the global recession we had to let go of people who have families just like mine and yours and that is incredibly tough.
One thing related to reducing our number of employees of which I am very proud is the training program we implemented before our major staff reduction. While others in our industry were laying off employees, at Correct Craft we implemented an extensive three month training program that gave our employees skills that will last them a lifetime. While we did not want to let anyone go, we were also committed to help those who were leaving obtain skills that would benefit them for the rest of their careers and improve their chances for finding other work.
JEFF CARROLL:
In what direction do you think the marine industry is heading now?
BILL YEARGIN:
Well, we recently completed our new four year strategic plan and as part of that plan we had to make some significant economic assumptions. As part of this we did some fairly significant economic research. I hope I am wrong (no, I REALLY hope I am wrong) but we came to the conclusion that the US markets would not be growing much during the next four years.
However, while we would obviously rather sell in a growing market, our company will be just fine, even if the market does not grow. We operate with a lot of discipline and we are ready for a long downturn, if necessary.
JEFF CARROLL:
You mentioned your new Strategic Plan. What can you tell us about that?
BILL YEARGIN:
As you can imagine, Jeff, our four year plan is highly confidential. While I would love to tell you and all the PlanetNautique members about it, I know there are lots of other interested parties that also view your website!
However, a few things I can say are as follows:
o Our four year Strategic Plan is very aggressive and calls for improvement in ways that will make our improvements of the last four years look slow.
o We divided the company into 12 different areas and each of the 12 areas has their own plan that rolls up into the overall company plan. Each of these 12 areas also has a stretch goal that they need to achieve to help us reach our overall company goals.
o We understand the impact of product so our plan is heavily product driven
The next four years are going to be an exciting time to be a customer, employee, dealer or friend of Nautique!
JEFF CARROLL:
This past summer, I had the pleasure of riding behind the 2010 PlanetNautique/White Lake Marine Super Air Nautique 210 Team Edition very often. It was a great boat, and I can’t wait to pick up my 2011 Nautique, probably in March. What’s currently sitting in your boathouse, and why did you choose that particular model?
BILL YEARGIN:
I currently own a Super Air Nautique 210. In the past I have owned a 211, 226 and another 210. I love to wake skate and wake surf and so do my daughters and nephews. The 210 is perfect for what we want to do.
I know this is heresy to some but our friends and family also love to tube behind our 210. OK, there, I said it – don’t judge me!
JEFF CARROLL:
Nautique has an amazing team behind the design of the newer boats. Some of our members are interested to know about any overall design changes that might be on the way. For example, the newest Nautiques have a sharper, more angled design as compared to the 210 and 230. Are there plans for integrating these newer design looks into future model years of the boats that currently utilize the older, more rounded design?
BILL YEARGIN:
Jeff, I am not going to disclose too much detail about our future design plans, however, I will say the following:
o Greg Meloon leads our Product Development team with the same passion for quality, performance and innovative product that made the Meloon family legendary. We are thrilled to have Greg leading this team and he has some great ideas about future product.
o Greg is surrounded by an amazing group of people who not only love our product but are also very committed to keeping Nautique on top. This team not only works on the product but they also live the Nautique life. They use their experience on the water to continually improve our boats.
o We have a great process that gives us feedback from both internal and external sources regarding future product. We get a lot of useful feedback and we welcome more.
o We have an aggressive four year product plan that includes a new product methodology that will help us continually keep our product fresh. Our customers will not be disappointed.
o Our process has pretty good track record with recent boats like the Byerly Icon Edition, the Ski Nautique 200 and the Sport Nautique 200.
o We will continue to lead. A couple years ago when we were the first to offer GPS-based speed control I said to watch because our competitors would be following us. We have seen this same pattern in other areas. At Nautique I am proud to say we are not following anyone, we are and will continue to lead our industry.
JEFF CARROLL:
Do you have any plans for offering a budget-based wakeboard boat or ski boat in the future? Some of our members are big fans of the older 210, and those people are convinced that the older 210 would be an ideal budget-based wakeboard boat. The same goes for the 196. Would Nautique ever consider bringing back those boats? Can you offer some insight on the reasons behind that decision?
BILL YEARGIN:
Jeff, our goal is to have the best water ski and wakeboard boats available. We are not building to a certain price; we are building to be the best.
The Ski Nautique 200 has proven that it is the best water ski boat available and unless you are wearing competitive goggles with very thick lenses you would have to agree. The Ski Nautique 200 has clearly differentiated itself from the competition, it has pulled two new world records, numerous national records and innumerable personal bests, and it is only a year old! That is our standard for new product introductions. I am happy to report that we are being told by customers that we have done it again with the new Sport Nautique 200 we introduced earlier this year.
The older models people sometimes ask me about bringing back were designed and manufactured in a different era. The construction methods resulted in a different production flow which gave more opportunity for inconsistency in the quality. Don’t get me wrong, they were great boats, but we believe our product development process and manufacturing techniques build a much better boat today.
Finally, without commenting on specific programs, you can be sure that Nautique will continue to be the world’s premium producer of high-performance towboats. Our product development team has generated a great track record and we are just getting started. We are excited about the future of our Nautiques.
JEFF CARROLL:
Are there any major changes coming to the ballast systems in Nautiques? Specifically, some of our members are interested to know whether you’ve looked into the Pure Vert ballast system.
BILL YEARGIN:
Our Product Development team has evaluated numerous ballast systems and concluded that our current system is the most robust system available. However, we are committed to making our boats even better so our team continues to focus on that with a goal of providing the best possible experience on the water. We are constantly looking to improve all aspects of our boats and are committed to providing the best we can for our customers.
JEFF CARROLL:
Several PlanetNautique members have asked whether Correct Craft may be experimenting with or planning for the use of alternative fuels in your boats. We have spoken about that a little bit in the past. Do you have any additional information for us at this point?
BILL YEARGIN:
Jeff, we are always looking into the future to offer the best in class product; and propulsion is no exception. PCM, our engine manufacturer, and Nautique have a great partnership; we are continually looking for alternatives in regard to horsepower, fuel consumption, transmissions, etc. We have experimented with diesel, propane and electric powertrain designs in a Nautique, but currently none of these alternatives come close to providing the performance or value of our current engines. However, I assure you that we are constantly on the lookout for the next big thing and we are constantly trying to make our boats better.
JEFF CARROLL:
Correct Craft has been known for offering the industry’s best warranty. Are there any major changes planned for the warranty in the near future? Some of our members have voiced their opinion that the warranties could be made more user-friendly by offering a single warranty, instead of one for the hull, deck and stringers, one for the engine, and one for the rest of the boat. Also, they’re interested in knowing the likelihood of the warranty ever being changed so that the second owner is covered without paying the transfer fees.
BILL YEARGIN:
Jeff, we are continually reviewing our warranty and the warranties of our competitors. We will keep doing this but at the current time we do not have any major changes planned.
JEFF CARROLL:
With the increase in dealerships that are closing their doors, how does Correct Craft plan to maintain their customer service levels?
BILL YEARGIN:
The first step is to work with our dealers to ensure that they do not have to close their doors. We have lost some dealers but if you look at the overall market Nautique has lost fewer dealers than our competitors.
We believe that a significant factor in so many Nautique dealers being able to stay open is our approach to their survival. We have continued to develop fresh product while others have significantly reduced their product development. We have worked with stressed dealers to help them move inventory, if needed, and we have worked with all dealers to help them keep their inventories at an appropriate level. We have not pushed them for orders that would be detrimental to them.
We are very fortunate to have the ownership structure and financial stability to be able to make the best long term decisions for both us and our dealers. We are not owned by a private equity firm who is looking to make fast money. We are owned by a family who wants me and our team to make the best long run decisions. As CEO I enjoy being able to do what is right for our customers and our brand, even if it has a short term negative impact. Our dealers and customers also benefit from Correct Craft being able to make the best long run decisions.
More specifically to customer service, our Nautique team is under no illusion as to the driver of the accolades we receive. Our customer service reputation is not only a result of building incredible boats but also a result of having incredible dealers who always go the extra mile.
Finally, the Customer Service department at our Orlando Headquarters is also very committed to making our customers happy. Led by Ron Nace (a/k/a Super Ron!) this team goes to great lengths every day to exceed our customers’ high expectations. We are all about quality, customer service and making people happy.
JEFF CARROLL:
How does Correct Craft determine which marine dealerships will be allowed to carry the brand?
BILL YEARGIN:
The process of managing our relationships with dealers (both current and prospective) is managed by our Sales Team which is led by the best Director of Sales in the boating industry, Mike Yauch. So, before I answer your specific question I want to use this opportunity to give props to Mike and his team. Our Sales team have been on the front line of the global economic mess the past couple years and have done a fantastic job supporting our dealers.
Our team has a strong emphasis on acquiring new dealers, particularly in areas with no dealer, which we call “white space.” Giving outstanding service to Nautique owners is critically important to us and our Sales team continues to look for dealers who can provide the service our customers expect and deserve.
When considering a new dealer, the Sales team will first analyze an area with market share data to make sure the market can support a dealer. Assuming the market is there, they will interview all the dealers in the area to make sure we have a good understanding of the market.
Our Sales team has a long list of required criteria that a prospective dealer must meet to become a Nautique dealer. Our Sales Team then reviews prospective dealers in an area against those criteria and makes the best selection for the area. I believe we have a good process in this area and it has helped us develop the best dealer base in the industry!
Finally, as word has spread throughout the industry regarding Nautique’s commitment to product development our job in this area has become easier.
We are regularly hearing from outstanding dealers who want to carry the Nautique brand.
JEFF CARROLL:
Are there any plans to offer a solid deck color on the wakeboard boats again? This continues to be a popular topic of discussion on PlanetNautique. In fact, I know of one buyer recently who was willing to pay a major premium to buy a 2002 Super Air Nautique just because it had a solid-color deck.
BILL YEARGIN:
We are not currently planning to change deck coloring options for the next model year; however, we are open to considering anything our customers would like.
JEFF CARROLL:
One of our members wanted me to ask a very specific question. I wasn’t going to do it, but then I thought that it might give an opportunity for you to explain a little bit about all of the things that go into building the world’s best towboats. His question is this. Why are your boats so expensive?
BILL YEARGIN:
Jeff, I don’t mind that question at all; in fact I am glad you asked it.
First, our team is clearly driven to be the best, not the cheapest. It starts with our product development process which is the most extensive in the industry. We invest up front so that we don’t have to “test in the field.” In addition to our extensive development time, we make sure we have the highest quality materials, best processes and a great warranty to stand behind what we build. We understand that our commitment, development time, processes, and materials all make the boats more expensive than some other towboats but that is ok, we are proud of who we are; we are trying to build the best boats, not the cheapest.
I believe the fact that we have won numerous awards related to every area of our business combined with our increasing market share and the fact that Nautique has the highest customer retention in the industry validates what we are doing.
However, just for clarity, we do understand market forces and we do want everyone to be able to own a Nautique. We know we have to be priced competitively. With this in mind, we also believe that a Nautique is not only the best boat available, but also the best boat value. When you combine the reliability of a Nautique, our great warranty, and the historically high Nautique resale value, Nautique becomes the best buy on the market. And, of course, you have to factor in the fun you have behind a Nautique, and that’s priceless!
JEFF CARROLL:
Correct Craft has been a long time industry name but in the past few years the company has been emphasizing the Nautique name much more. There are still a lot of loyal Correct Craft customers, will that name be going away?
BILL YEARGIN:
Jeff, frankly, four years ago our branding was a mess. We had all kinds of different logos used in all kinds of different ways and I knew we needed to fix that. Our team is near the end of a three year re-branding process that I believe does a much better job identifying our product and our company.
Our company is Correct Craft and we are very proud of that name. There is a lot of heritage in the Correct Craft name and we embrace it. The Correct Craft name is not going anywhere.
Over the years Correct Craft has had many different brands of boats. Now that we are only selling one brand (Nautique) it can be a little more confusing. While we have no immediate plans to introduce a new brand it is something we may consider in the future, under the Correct Craft umbrella.
Nautique is the brand of our boats and we are obviously proud of that brand too.
JEFF CARROLL:
It is no secret that Correct Craft is a company with long-held Christian values. How does that play into the way the boats are built, the way the company is run, and the overall culture of Correct Craft?
BILL YEARGIN:
Jeff, faith is an important part of our culture. We believe our values reflect that culture.
We do community service projects and each year take employees on an international service trip. We have built two houses in Mexico, worked in a shelter for teenage mothers in Nicaragua and this past year built beds for some less fortunate families in Guatemala. We also have a voluntary weekly Bible Study for those who want to participate.
There are a couple things that are important to share related to this culture.
First, everything we do is voluntary for our employees and participation or lack thereof does not in any way impact an employee’s job at Correct Craft. It is very important to me that we are a very inclusive team and if someone chooses not to participate in one of these activities that is just fine.
Secondly, while we are proud of our culture, I want outsiders to see our values not by what we say, but by how we conduct ourselves. We want to live out our values, not shout them out. We are far from perfect and if you watch me long enough I will unintentionally let you down; however, we do strive to do the best we can to live our values.
Our values do impact how we run the company but it is not as overt as some might think. We want to treat people right, be honest, care about those who are hurting and forgive those who do us wrong. We also know our boats are a reflection of our values and that is one of the things that drive us to be the best.
Finally, the Meloon family built our company on our values and we still have several Meloons still working with us today, including Ralph Meloon, son of our founder and industry legend!
JEFF CARROLL:
There have been some PlanetNautique members who have wondered why the company is not more active on PlanetNautique and other discussion boards. Can you address that?
BILL YEARGIN:
Jeff, as you know there are several industry discussion boards and it would be a huge commitment for us to try and follow each one and respond to everything that is said about us. Also, while PlanetNautique members seem very responsible, people can say anything on a discussion board and trying to respond to everything that is said is sort of like chasing the wind and would probably make us come across as defensive.
In regard to specific customer issues, we have no plans to ever respond to those kinds of posts. We are committed to making the customer happy but it is impossible to correctly communicate all that is happening on a discussion board.
However, Jeff, I am happy to do these occasional interviews with you and I hope that they not only answer specific questions about us but also communicate what is going on at Correct Craft and some of the thinking behind our decisions.
JEFF CARROLL:
You had an injury early this season that has kept you off the water for the majority of the summer. How has your healing been progressing? Are you back on the water now?
BILL YEARGIN:
OK Jeff, when I agreed to do the interview I didn’t know you were going to bring up my injury!
You are right; unfortunately, I did have an injury that kept me off the water much of this summer. In early April I was wake skating and tore an adductor muscle in my right leg. It was a pretty serious injury.
I was in physical therapy much of the summer but fortunately I had a great sports therapist and he got me back on the water. A few weeks ago I started wake surfing and eventually got back up on my wake skate. I love being on the water with my family and friends and couldn’t wait to get back.
I am still not 100% but I should be back there soon!
JEFF CARROLL:
Do you have any other thoughts that you’d like to share with the members of PlanetNautique?
BILL YEARGIN:
Jeff, first, let me thank you for your incredible commitment to PlanetNautique. Nautique owners and friends are fortunate to have someone like you who provides such a great service.
Secondly, I would like to thank everyone on PlanetNautique for their loyalty. We appreciate the fact that you have chosen to be passionate about our Nautique boats. We take your passion seriously and we want to be sure that we never let you down.
Finally, I hope everyone reading this interview will come visit us in Orlando and tour our plant. If I am in the plant when you visit I would love to personally meet you, just ask for me!
Jeff, thanks for this opportunity!
