2017 has been a big year for siblings, Ashley and Eric Smith. They have recently started the legal transition of ownership of their family business, Colorado Boat Center, located in Johnstown, Colorado. In addition, the dealership is under-going a large remodel that will bring their services, products, and employees all under one roof. We had the chance to ask Ashley and Eric questions in order to learn more about the changes happening at their dealership and how their time in the industry has prepared them as they begin to take over the family business.

Q: You two just took ownership of the business in April. Congratulations! What did you do to celebrate?
Eric: To be completely clear, 2017 marked the legal transition of ownership for Ashley and me. Tom and Nancy still maintain the controlling interest in CBC. Our full transition period is cast over the next 5 years with Ashley and I purchasing the remaining shares during this time. So, the complete ownership for Ashley and I will not be fully executed until that period expires. To mark the milestone, I stored the documents in a safe deposit box and my wife took me out to dinner.

Ashley: 2 hours after we signed the paperwork I was on my way to my Spader Leadership Course in South Dakota. I celebrated at the airport with a Prime rib dinner.

Q: So you’ve both worked in the family business for a number of years now. What have you done to prepare for taking over the business?
Eric: As with many of the other next generation owners I’ve worked through each department in my tenure. This has given me a working knowledge and relatability of how each area functions independently but also the understanding of the process to keep the dealership running efficiently. A lot of what we have done over the past few years is to work with Tom and Nancy in understanding their roles as owners, the decision-making process and the delegation of various responsibilities. Tom and Nancy have built the business over 27 years through that time they have made mistakes and dealt with hardships. Much of what they are training us for is how to handle these situations and to not make the same mistakes they may have.

On a personal level, my wife and I have discussed my eventual role into ownership deeply over the years and the impact that it would have on our lives socially, monetarily and as a family unit. Many of the activities that were once a priority have been reorganized to hobbies. My perspective is that the business is organic and for it to continue to be successful I need to tend to it in the same way an athlete cares for his body or a farmer to his field.

Ashley: I feel fortunate to be partnering with my brother. For 11 years plus Eric and I have had different responsibilities throughout the dealership which has prepared us for this transition in itself. Most of his strengths are my weaknesses and vice versa. Eric is definitely more task oriented as I’m more people oriented. As owners, I think it is important to learn all aspects of the business, but it’s just as important for us split up responsibilities based on our strengths.  We’re doing a 5 year succession plan.  Our parents are still very much involved in the business, but they’re giving Eric and I the room to learn and make decisions on our own.  All while being available when we need their expertise.  I believe they are ready to step back as quickly as possible. They’re not only planning vacations this year, but they’re actually booking them too!  That shows me they trust Eric and I have it handled.

Q: What would you say is the most valuable lesson you’ve learned during the transition?
Eric: Communication, don’t expect anything to unless you make your voice heard and you listen/understand the perspective that’s coming your way as well. We have 4 very different personalities within the family, with that comes a unique vision from everyone. We can’t let our feelings get hurt because this is about the business and it should not be taken personally.

Ashley: I’ve realized I can’t be taught all of the ins and outs of the business all in one day or by one specific person. I’ve had to take the initiative to learn and work with all departments throughout the dealership, ask questions, be hands on, and be prepared to make decisions when no one else can.

Q: If you could give a soon-to-be successor some advice, based on what you learned during the transition, what would it be?
Eric: Work with a 3rd party and lawyer who have no affiliation to the business to begin your succession planning. Do it early and take your time to execute it properly. Plan monthly board meetings to discuss the progress and transition of responsibilities.

Unfortunately, not enough thought goes into succession planning in a lot of family business’, especially within our industry. Often the next generation is either too impatient or entitled, the current generation doesn’t want to give up the keys, they just want to hand the keys off and run, or worse yet they pass and the family has no idea what the next steps should be.

Ashley: Communication is key. You can’t be afraid of hurting someone’s feelings. You need to be able to separate family from business and speak up when something is important to you. If you don’t understand, ask as many questions as you can until you do.

Q: You’re in the midst of a major renovation project right now. Tell us about that and what you expect it to mean for your business.
Eric: It’s ironic that this is being done as Ashley and I are taking over but it is something that we needed to do as a business to set ourselves apart and move forward for the coming years.

Over the years, we have kind of “made do” with the facilities that we have on our lot. As the business continues to grow it becomes more difficult to operate out of 3 separate buildings. Now, we’ll have everything under one roof. It’ll be clean, modern and up to date with the tools and communications that are needed by our employees.

From a customer standpoint, it’ll be fantastic. We have made a transitional shift over the last several years as our customer demographic sits on the higher side of the curve. They are coming in for an experience, just like they receive with their high-end car purchase. When they pull in on the lot and it’s dirty or outdated you’re setting off that experience in the wrong way. By no means are we building the next BMW or Mercedes dealership but we are cleaning up our appearance to be more comfortable to our customers and employees.

Ashley: We’ve operated out of three buildings on our site for 13 years. Our new facility will house all departments under one roof. Once the construction started, our showroom turned into our parts and service department forcing all of the employees into one building and to operate in tight quarters. It has been a great indicator of what will happen once we are in the new facility. Our culture is evolving and our efficiency is improving throughout all departments. We represent three of the boating industry’s top manufacturers, have a full certified staff and a list of accolades. The new building will be like frosting on the cake and set the standards for the future of our business.
 

Q: We’ve noticed that you guys are following in the footsteps of your parents from a lifelong learning standpoint. You’re both involved in MDCE, Dealer Certification, 20 Groups, Spader courses, and more. Tell us what role this culture of learning plays for you and your success.
Eric: The process of self-improvement is continual and the moment you think you know it all or that you’ve got it, is when you’ve begun to dig your own grave. I feel that each day we should strive to better than we were yesterday. This comes from continual education, discussion among peers, establishing standards, etc. A lot of times some of the best “new” ideas we have are picked up from other dealers and/or at workshops. All we’ve done is tweak and process them to fit our organizational needs. There is a wealth of knowledge within our industry and most people are open to talk about what works for them. The cliché of trying to reinvent the wheel, that’s what you’re doing if you’re doing it alone.

Ashley: Our parents are the epitome of dedication, hard work,and perseverance. For as long as I can remember, our parents taught us the importance of continued education, setting goals,and pushing our capabilities to new heights in anything we do. The education I’ve received through MDCE over the past several years was the starting block to learning the industry inside out. Each year, I bring back a stack of notes and work with the staff at narrowing down the most important ideas we’d like to implement in our dealership over the next year. I’ve just recently started attending the Spader 20 Group meetings. This has opened a whole new side of the business to me. Budgeting, numbers, reports, oh my! In January I began the Spader Leadership Development Program. I’ve only been to two sessions out of the five, but it has transformed my mindset both professionally and personally. The dynamics of my relationships have also changed dramatically. I’ve been able to practice and implement what I’ve been learning throughout the entire dealership all while seeing an open and positive response from my family, employees, and customers. I went into my course thinking I was going to have to make a cut in our staff. This month I will be rewarding him for hitting his monthly sales goal. This is a prime example of how my continued education helped better myself to help better my team.
 
Q: OK, now that you’re owners, what’s the first big decision you’ll need to make?

Eric: When I can get Tom and Nancy a scheduled day off… Seriously, we are short manpower in a couple departments so we’ve got some staffing needs to fill.

Q: What has been the most rewarding part of building a career out of being a boat dealer?
Eric: The relationships with my family, customers, other dealers and manufacturers. We are a family business and we look at all our relationships as our “business family”. It means a lot to see the smile on a customer’s face after delivery or to get an emailed picture of them out on the lake. The thought of knowing you’re providing for the employees and their families. The continual feedback and support from our peer dealers.

Ashley: My family got in the industry because we loved boating. To pass that along to other families, build lasting relationships, and share it with an industry who shares the same passion is the most rewarding part of my career.

Q: What are some things that people may not know about you?

Eric:

1. I am the dog father to the cutest golden doodle in the world, Bucky. I may be partial.
2. Born & raised in Colorado and have never snow skied, boarded or anything like that
3. I’m an endurance junkie, completing 5 Ironman triathlons, several marathons, and a couple double crossings of the Grand Canyon.
4. My dream job out of college was to be a lobbyist in DC.

Ashley:

1. I love raw oysters
2. I don’t share my popcorn
3. I enjoy cooking
4. I’m obsessed with the Food Network
5. My life revolves around good food and my cat

Today’s boating industry could teach politicians a thing or two about coming together for the greater good.

And who knows? Perhaps we’ll get the chance. This week, the industry is gathering in Washington, D.C., at the American Boating Congress, which attracts people from just about every corner of the recreational marine business.

While the No. 1 purpose of ABC is to lobby together on The Hill in support of the boating industry, there are a lot of other meetings here as well. For example, yesterday, local, state, regional and national trade associations representing dealers, marinas, manufacturers, distributors and representatives sat down together to share best practices during a National Marine Trades Council meeting.

That group joined the Recreational Boating Leadership Council at lunchtime for a joint panel discussion on solutions to the most painful challenge we’re facing right now: workforce issues. After lunch, the RBLC went on to discuss what else the industry is doing and can do to overcome some of our biggest barriers to growth.

Today, history will be made when the Marine Retailers Association and the National Marine Manufacturers Association sit down at the same table for their first ever joint board meeting. Afterwards, BoatPAC – the joint political action committee of the NMMA and MRAA – will bring the industry together for a fundraising event.

We work in what has been often called a fragmented industry. And there have been times in our history when we’ve struggled to come together to sit at the same table. But there are few things that give me more faith in our future than the collaboration that’s taking place in our industry today. During a time when the United States is more divided along political lines than ever before, the recreational marine community is going in the opposite direction. We are working across the aisles that have historically divided our industry. And there’s no better city to be doing it in. Those that aren’t here to witness this and join in, I wish you could be.

One of the most frequently asked questions by dealers considering getting Certified is: “What is the industry doing to make consumers aware of the benefits of doing business with a Certified dealer?” The answer is: Quite a bit!

1. First and foremost, we believe in empowering YOU to tell your story of how Certification makes you a better boat dealer. We help you by providing resources like press releases, advertisements, sales strategies, the Consumer Commitment and more.

2. Second, the Dealer Certification Program was launched by Grow Boating, and MRAA continues to work with a Grow Boating Committee to build a relevant program for today’s industry. Grow Boating, through its consumer-facing Discover Boating website, promotes Certified Dealers and why it’s important to buy and service a boat from a Certified Dealer.

3. Speaking of why it’s important to buy or service your boat at a Certified Dealer, here’s an article we collaborated on with Boating magazine. Each year we work with Bonnier Corp., which publishes Boating magazine, to tell their subscribers about the value of doing business with Certified Dealers. Ads in their magazine and their newsletters, as well as custom content in their newsletters and on their social media sites, promote Certified Dealers and are distributed to boating consumers on an annual basis.

4. Each year, the National Marine Manufacturers Association promotes Certified Dealers at its boat shows, providing a page in its show directory that highlights all the Certified Dealers displaying at that event as well as signage for Certified Dealers’ booths.

Tell Your Story
When you reach the pinnacle of the industry as a Certified Dealer and adhere the badge to your front door and your website, it’s a good time to take a breath and pat your team on the back for a job well done.

Then, use the marketing tools provided to you to create awareness and put the question in the mind of the boat buyer or owner: What does Certified mean? This is your team’s opportunity to blow their own horn and enthusiastically explain what a Certified Dealer must go through to reach this level of recognition.

This is the purpose of displaying the Consumer Commitment, aka ‘The Customer’s Bill of Rights.” Truth be known, customers come to your dealership to look at boats or to get their boat serviced. Reading plaques on the wall doesn’t rank high on their priority list during their visit. Therefore, mentioning Certification needs to become part of your pitch to every boat buyer or service customer. The plaque on the wall is simply a visual aid to help tell the story.

One of MRAA’s top performing dealer groups has taken this to the next level by restyling and enlarging the Bill of Rights to free standing banners that are proudly displayed in each of their many showrooms.   This group and others also bring the Customer Commitment with them to their boat shows because it helps separates them from the sea of fiberglass or aluminum at the show. They realize that a boat show often levels the playing field. The boat buyers only see bright shiny boats, all perfectly displayed for the weekend, and can’t see exhibitors’ decked-out dealerships (or not). I’ll never forget when one of our dealers told me that they walk everyone over to the Bill of Rights before they leave their boat show display and say, “When you’re looking around the Boat Show, make sure you look for dealerships that display these Bill of Rights.” He went on to say, “This sets up the next dealer for failure, and we enjoy a larger amount of B-Backs.” So, if you’ve been looking for the elusive B-Back powder, this might be it!

Bottom-line: You must beat your own chest and tell everyone you’re Certified because your competition won’t. Use all that we provide to help you create awareness and get customers asking: What does Certification mean?

Kevin Roggenbuck is the President and CEO of Lake Union Sea Ray. After working for a boat dealership in high school and college, he knew that the marine industry was where he saw a future. Many years later he and his family moved to Seattle and opened his first dealership. Today, Kevin oversees three locations in Northwest Washington. We had a chance to ask a Kevin a few questions in order to learn more about him and what keeps him motivated.

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Q: Tell us how you got your start in the boating industry?
Roggenbuck: I grew up boating and spent the summers on Hayden Lake in northern Idaho. When I was in high school and college, I had the opportunity to work for a boat dealership in Spokane. I loved the atmosphere and the boating community. Some years later, I moved my family to Seattle to open a Sea Ray dealership.

Q: What’s the most interesting decision you’ve had to make since you’ve been in the industry?
Roggenbuck: Just before the “downturn”, one of my biggest competitors, who was celebrating 50 years in the marine retail business, was not doing so well and became available. Never did I think I’d end up buying the company and all of the assets. Since then, Lake Union Sea Ray has accelerated quickly, running on all cylinders. Eight years later, Lake Union Sea Ray employs 80 men and women, sells seven brands of boats with three dealerships and three parts and service facilities. As a team we continue to receive industry accolades that highlight our hard work and continued customer care.

Q: You’re in a region and even on a lake with a lot of great dealers. How do you find your niche and differentiate your dealership?
Roggenbuck: From the very beginning, it was important to me that Lake Union Sea Ray built a reputation for integrity, professionalism and great customer care. Every employee knew what was expected of them. Additionally, we have been blessed by offering some of the best brands in the business, who supported both the dealer and the buyer of their boats.

Q: In 2016, your company was named one of Washington State’s Top 50 family owned businesses. What’s your secret formula for success?
Roggenbuck:  Integrity, professionalism, and great customer care.

Q: In addition to being an award-winning boat dealer, you also won a Formula 1000 national championship. Tell us about that.
Roggenbuck: I’ve been racing for over five years. When I was younger, I was involved in racing, but it took me decades to get back into it. I started competing in Open-Wheel Formula racing at the national level two years ago. In my rookie year, I qualified second in the national race. Unfortunately, I didn’t even make it around the second lap due to my car catching on fire. No one was hurt, thankfully. That just gave my team and me the motivation to come back stronger the year after, which is the year we took first in the national race. My team consists of six people—technicians, engineers, and a team manager. We travel from Seattle up and down the west coast—all the way to Daytona.

Q: How does your drive to be successful racing cars carry over to your drive to run a successful business?
Roggenbuck: Like in racing, I always strive to be in the front. Any successful business or racecar driver has a passion for what they do and strive to be the best, go the fastest, and outperform everyone. It takes a tremendous amount of planning to get to the top. When racing, you must be active in every part of the planning process and the race itself. If you make sudden changes while going 175 MPH on a racetrack, you are going to hit the wall or have trouble staying on course. The same goes for business. If we make sudden changes in what we do, we won’t be able to perform at our best and we might spin out of control. Only with careful planning and execution can big chances be made successfully.

Q: What are you doing differently today versus this time last year that has helped you stay competitive?
Roggenbuck: We have made a concentrated effort to expand our training of all Lake Union Sea Ray employees in their art (sales, service, parts, and administration) and their skill. We’ve recently brought in a full-time Executive Performance Coach who is available to all employees. This coach will be able to help employees achieve their goals and get where they want to be in their professional lives here at Lake Union Sea Ray.

Q: What’s the greatest piece of advice you’ve received during your career?
Roggenbuck: This may not be considered advice, but it proved to be a great motivator. When I first moved to Seattle, a competitor told me that I would never make it in Seattle. It became my mission to prove them wrong. Another piece of advice I live by is “take care of your customers and they will take care of you.”

Q: What are 5 things that people may not know about you?
Roggenbuck: I’m pretty much an open book, so I doubt there’s much to disclose here other than maybe a few minor things:

• I almost never have a desire for pizza or fast food; but, maybe a really good chocolate chip cookie once in a while.
• I sometimes feel a little embarrassed when a customer writes a big check for a new boat and says, “thank you” before I have the opportunity to thank them first.
• One of my goals is to leave the largest carbon footprint of anyone I know.
• With no desire to ever retire, I want to continue being a part of the boating community for a long, long time.

If you have a nomination for the Member Spotlight section of our newsletter, please send an email to mickaela@mraa.com.

Hi, I’m Bob and I’m a chocolate milkshake-aholic!

Because of this addiction, I frequent places that serve such divine pleasure. One place that got my attention this week promotes a Happier Hour and offers milkshakes at half price. They are hand-dipped, old-fashioned shakes topped with whipped cream and a cherry, all for $1.61 including tax! What’s not to like? I’ll tell ya: The aggravation of getting one!

The only thing consistent at this shake establishment is a poor customer experience that starts with, “Is anyone helping you?” This after a several-minute wait with no other customers in the place, delivered by a checked-out employee. Yes, I do go into the restaurant with décor that gets me in the mood for this classic, smooth beverage. The reason I go into the restaurant is to confirm that they are open and there are people working. You can’t tell from the silence coming through the speaker in the drive-thru! Every time I manage to achieve one of these shakes, I’m thinking it will be my last because a place like this isn’t going to stay open long.

Serving vs. selling
Compare this experience with a place down the street that doesn’t have Shake in their name, a chicken sandwich place. How can a place that sells chicken compare with a place that serves Steak and Shakes?  The difference is that the chicken place SERVES their customers and the steak place SELLS their customers. Truth is, the shakes at Chick-fil-A are machine made and the flavor is spun in, but they don’t forget the whipped cream and cherry! It’s the pleasure of being served by such enthused employees that makes the shake taste better.

I’ve been a raving fan of Chick-fil-A for years, and they find ways to further delight me on every visit. I have always parked my car and gone into the restaurant because the line that wraps around the building for the drive-thru deters me. I went out today to do some errands and brought along our new puppy, Lilly. I had the urge to fulfill my addiction and pulled into Chick-fil-A knowing I couldn’t walk in for my shake because I couldn’t bring Lilly inside. Leaving a dog in a car in the Florida heat is not an option. There it was, the line wrapped around the building, and I had to wait for vehicles to leave the window so I could get in line!

As I was thinking, “Is this worth it?” a young lady walked up to my window and asked my name. “Do you know what you would like?” I gave her my order, and she asked if I was paying cash or card. Meanwhile, the line ahead of me is already rounding the first corner of the building, so she asked me to move forward and walked along with me. She told me that she could take my card, swiped it across her belt, and returned my card. Again, the traffic ahead had already turned the next corner, and I followed, encountering another young lady who was holding my receipt and said, “Here you go, Bob!”

I still hadn’t come to a full stop, and I saw a young man directing the car ahead of me forward to clear the window for me with their bag of food in hand. I finally could make a full stop and put my credit card away while another lady at the window asked, “How’s it going today, Bob?” as she bagged my sandwich and handed me my chocolate fix!

Wow! It took less time to get served from a line that wrapped around a building than it took for the other restaurant to say, “Is anyone helping you?” I don’t think I need to see the books for each of these businesses to determine which is more profitable or review employee satisfaction surveys to know which has happier, more engaged employees.

How they do what they do
How does Chick-fil-A do it? I’m certain it didn’t happen overnight. I’ve eaten Chick-fil-A sandwiches for too long, well before they started serving my version of crack. They were never this good. They went from good to great! They haven’t shared their secrets with me, and I’m not sure they will. But I’m certain it starts with a proper culture and training. Then lots of observing and talking with customers to find the less-than-desirable parts of the experience and make them a pleasure.

Can we do the same in the service department at a boat dealership? I think we can by creating a great place to work, always looking for ways to exceed the customer’s expectation that will naturally drive profits, thus having a viable company that will keep customers for life. Adopting the processes required to become a Marine Industry Certified Dealership is a good start to creating the right culture and making sure your dealership’s operations are in line with customer expectations. However, the process to stay Certified is the special sauce that keeps you looking for ways to further delight your customers on every visit.

I hope you enjoy your food and milkshake on your next visit to Chick-fil-A, and more importantly, enjoy how they serve their customers!

Steve Arnold is the owner of Yarmouth Boat Yard and Moose Landing Marina located in Maine. Steve has been involved in the marine industry for a great while. He grew up in Fort Lauderdale, and started his time in the marine industry as a yard hand. Arnold worked his way up through management roles before heading off to college at Florida State University. After earning his MBA, Steve embarked a career in finance. In search a richer quality of life, Steve moved to Maine in 2003. He purchased Yarmouth Boat Yard in January 2004, happily shifting from his career as the Vice President of Trading at Goldman Sachs to focus on his passion for boats. We had the chance to ask Steve some questions in order to get to know him better and discuss the industry that he couldn’t stay away from.

Q: How long have you been in the marine industry and what is your fondest memory of your time, so far?

Arnold: I grew up working in marinas in Fort Lauderdale. I started out as a yard laborer, sanding bottoms, and worked my way up to travel lift foreman. 

My fondest memories are when customers take delivery of their new or used boat for the first time. It’s a very happy day. For some, owning a boat and being on the water has been a lifelong dream. It’s very gratifying to be able to help them fulfill that dream. 

Q: You acquired the business in 2004, What made you decide to get into the industry?

Arnold: Marinas have always fascinated me. I really enjoyed early years working in boatyards and it was a time in my life where I could make a transition and hopefully succeed at it!

Q: What is the most interesting decision you’ve made while in the boating business? 

Arnold: There are too many to list, but one important one is when we decided to carry the Pursuit line of boats. That decision really put little old Yarmouth Boat Yard on the map and it has been a great partnership over the years.

Q: What are you doing differently today versus this time last year that has helped you stay competitive?

Arnold: For us it is always about the customer experience. I challenge all our employees with the question of “how do we make the customer experience better”? Knowing your competition and market share is good, but delivering a A+ experience for the customer is even better!

Q: What are your hopes for our industry?

Arnold: More consolidation for one voice to be heard at the national level as well as at the state level. As an owner of two marinas in Maine, I have to manage a lot of the agencies who oversee our industry. That is a full time job itself.

Q: You have been an MRAA certified dealer since 2008. What value has the certification brought to your dealership?

Arnold: Becoming Dealer Certified was one of the best decisions I have made. It taught me and my employees how important it is to maximize the customer experience. It provided a handbook of best practices to help us achieve our goals and drive up our CSI scores. It made us consider everything from the appearance of our facilities to boat deliveries. The process of becoming dealer certified helped us to clarify our objectives and fine tune our strategies.

Q: What’s your “dream boat” to own?

Arnold: A 38’ Holland lobster boat. One of my customers owns one and I love that boat.

Q: What are 5 things that people may not know about you?

Arnold:

1. I haven’t flown in a while but I have my pilot’s license.
2. At one time in my life, I wanted to be a CPA and sat for the exam.
3. I worked on Wall Street for several years.
4. I have lived in London and San Francisco at different points in my life.
5. I have never had a peanut butter and jelly sandwich (my daughter finds that fascinating.)

 

If you have a nomination for the Member Spotlight section of our newsletter, please send an email to mickaela@mraa.com.