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The Business Model<\/strong><\/p>\n A boat can be both an emotional purchase for someone who truly loves boating, but also a purchase that is meant to show off someone\u2019s wealth and status. Hinckley hits all the right notes when it comes to this significant acquisition:<\/p>\n <\/p>\n The Operating Model<\/strong><\/p>\n A Rebound and Refocus on Customer Service<\/em><\/p>\n Hinckley suffered during the economic downturn and accumulated significant debt \u2013 and lost half of its 635 employees. In 2011, it was acquired by the private equity firm Scout Partners. And, thanks to its strong name and customers, it was able to rebound and rehire almost its entire workforce by 2012.<\/p>\n Unlike many other yacht companies, Hinckley maintains its tight link to its customers by only doing built-to-order, rather than working with dealers \u2013 an important coup for their brand equity. At any given time, there are only ~30 boats in production, and almost all of them have been purchased by an individual. Rather than focusing on volume, Hinckley focuses on the quality of each stage of a customer\u2019s ownership experience.<\/p>\n Hinckley maintains a very close working relationship with a customer as her boat is built. Typically, a customer (or her representative) works directly with a sales director on the boat design. Everything is customizable, down to the alignment of the screws. After the boat\u2019s completion, the customer picks it up at one of Hinckley\u2019s eight eastern seaboard service yards, where she is introduced to her dedicated service manager, as well as an app that helps her track the condition and status of her boat should it ever go into storage. As one manager put it, his job is to make sure that \u201cCustomers feel taken care of, that this is their boatyard of choice, and that they wouldn\u2019t consider going anywhere else.\u201d<\/p>\n Each yard feeds off of each other. Boats can travel north during the summer and south during the winter, allowing for a consistent, quality customer service experience.<\/p>\n And to close the loop, when a Hinckley owner wants to trade in her boat after a good run of several years, she can resell it to a Hinckley brokerage.<\/p>\n <\/p>\n Craftsmanship, customized<\/em><\/p>\n The production yard is the biggest employer in Trenton, ME, and the workers take ownership in the success of the company as well as each boat that they build. The factory operates as a classic job shop. Most of the hardware is made by Hinckley, with the exception of the hydraulics, electrical, and electronics. Hinckley works closely with its OEMs to train its production team in state-of-the-art mechanics.<\/p>\n Many of the production crew employees are akin to artisans, and they can spend years working on a single boat. A $2 million boat upgrade project could occupy a team of 25 for two years, customizing every aspect of the boat.<\/p>\n In this market segment, it is impractical and prohibitively expensive to build prototypes. Hinckley depends on Computer Aided Design software for the hull design, and then does a full sized mockup of the deck and interior layouts. This allows the designers to get a sense of how to get the space of the boat just right for their discerning customers.<\/p>\n Hinckley\u2019s product, customer base, business strategy, and marketing are all perfectly aligned to create timeless, beautiful boats for decades to come.<\/p>\n References:<\/p>\n http:\/\/www.tradeonlytoday.com\/columns\/general\/qa-with-jim-mcmanus-ceo-of-the-hinckley-co\/<\/p>\n https:\/\/www.youtube.com\/watch?v=-VS6u_KCJd0<\/p>\n Hinckley launches new model of power yacht<\/a><\/p><\/blockquote>\n\n
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