What a Perfect Business Looks Like
Every so often, I come across a company that just gets all the fundamentals right.
The last perfect business I featured was a firewood stand that sold bundles of wood for five bucks.
Today, I want to tell you about the guys at Royal Nautiq.
After my 3-week odyssey in the Atlantic, my boat needed several repairs. The dinghy had been a major problem throughout the journey, partly because it was too big for the boat.
I needed to sell the dinghy and buy a new one, but I had to do some repairs to the dinghy first. So I asked around and got just one name: Royal Nautiq.
Here’s the description of Royal Nautiq from their website: We are the go-to shop from the North Shore to the Cape for inflatable dinghy repair, service, and sales.
Clear. Simple. Beautiful.
I live in the right area. I need a dinghy repaired. These are my guys.
Lesson #1: Royal Nautiq knows exactly what they do and the market they serve. They give customers that information upfront and in plain language.
***
I called the shop and spoke with Mike. Royal Nautiq is just two guys, Mike and Jim. Mike handles the body of the inflatables, Jim handles the engines.
My conversation with Mike went like this:
Is this Mike, the inflatable guy?
Yep.
Do you fix dinghies?
Yep.
Can I patch my dinghy myself?
Nope.
What if I buy a fancy patch kit?
Nope, it won’t work.
Everybody says it will work.
It won’t. You have to fix it from the inside.
How do I do that?
Don’t worry about it. Do you want me to fix your dinghy?
Yep. But I don’t have a trailer.
Then I can’t fix it.
Can you come to me?
Nope.
My first conversation with Mike ended without a transaction. he wouldn’t come to me, I couldn’t get to him, so he wouldn’t do business with me.
Mike’s communication was clear-cut. He’d like to have my business, I suppose, but not enough to change his way of operating. And Mike was confident in his recommendations. My way wouldn’t work. If I wanted him to fix my dinghy, I had to bring him my dinghy and let him fix it his way.
Lesson #2: Royal Nautiq understands their business model and doesn’t make exceptions to it. Going to a customer’s site is a hassle. So they don’t do it. Nor do they pick up your dinghy. They’re comfortable saying no when a customer request falls outside of what they offer.
Lesson #3: Mike was a straight shooter. He flat out told me that repairing the dinghy myself wouldn’t work, but I never felt like he was selling his services. Just giving me the objective answer based on his expertise. It made me trust him that much more.
***
Guess what happened next? I tried patching the dinghy myself…and it didn’t work.
So, I called around, borrowed a trailer, and brought my dinghy to Mike, just like he required. Another straightforward conversation when I arrived:
How much will it cost to fix?
As much as it costs.
?????
What difference does it make? Will you do it yourself?
…No.
Okay. Do you want it fixed?
Yes.
And Mike fixed my dinghy. He gave me a fair, direct price. It cost less than it would have anywhere else, but it wasn’t a bargain. The work was done more quickly, too. And they did a great job.
Lesson #4: Royal Nautiq has their value proposition locked down. It’s focused on the Iron Triangle (price, speed, quality). They have figured out how to compete well in all three areas, which is unusual.
***
My dinghy is fixed, but now I have to sell it and buy a new one. Turns out Mike can help me with that as well.
This dinghy was too big for your boat, right?
Yeah.
We have a smaller one we will sell you. It’s been sitting here on consignment for a year. We’d like to get rid of it. It’s probably the exact dinghy you need.
…What’s the price?
I bought the dinghy.
You should buy this trailer, too. Nobody will buy your dinghy without a trailer.
…You’re right.
The next morning, a call from Mike:
Good news. I sold your dinghy.
For how much?
How much would you want?
Probably $8500.
I sold it for $9,000, I’ll give you $7,000.
How about $7,500?
Done.
The dinghy that gave me so much trouble is fixed, sold, and out of my hair.
I have a new dinghy that will fit perfectly on my boat.
Mike made this process easy. He got a good deal, I got a good deal. We both walked away happy.
