A man from Iowa traveled to Abilene during his spring break in March for one reason – to tour Tigé Boats, Inc.
Such visitors – in this case a six-time customer of Tigé watercraft – are common for the builder of high-end inboard motor boats, said Jean Wagner, Tigé corporate relations manager.
Tigé specializes in boats for water sports enthusiasts, especially in wakeboarding, wakesurfing and wakeskating. (Visit tige.com for video of such activities.)
Company officials tout their boats’ innovative engineering and premium accessories. Tigé holds two U.S. patents on its unique hull design that, along with other boat components, allows customers to create custom wakes specific for rider and water conditions.
The 10 models currently in the Tigé lineup range from $40,000 to $110,000.
“We build and sell dreams. People work their entire lives to put this boat in their driveway and drive it to the lake on the weekends,” said Rick Correll, Tigé president. “We try to honor that dream.”
Tigé makes that dream a reality worldwide with dealers in Canada, France, Australia, South Africa, Russia, Japan, China and other countries. International sales currently account for 30 percent of all business.
But, many potential customers put that dream on hold during the economic downturn that started in 2008.
“We are acutely aware that we are in an industry that no one needs,” Correll said.
Marine industry sales plummeted 70 percent. Some manufacturers filed bankruptcy. Several dealers shuttered their doors.
Tigé boat production went from a peak of seven a day to two, and employment from a high of 279 to 50-plus, Correll said. There also was at least one month-long furlough and pay cuts, he said.
But, the company protected its brand by buying back boats from dealers going out of business rather than letting them be slashed in value. And, they paid their vendors on time, fostering a relationship that is beneficial when supplies are needed quickly, Correll said.
The practice of not building a boat until it is purchased also kept Tigé from overextending itself. During the lull, Tigé pushed innovation.
In the last three years, three new-and-improved models have rolled out, based in part on customer and dealer feedback, said Tony Fussell, director of sales.
For example, Tigé introduced touch-screen controls in 2010, the first in the industry. In 2011 Tigé celebrated its 20th anniversary with a Platinum edition that was so popular it is being continued in 2012, Fussell said.
“We made it our focus and our goal that when the turnaround happened, we would be prepared to leap frog everyone else,” Correll said.
Tigé is now ranked fifth in market share in the industry, having risen at least three spots since the recession began, Correll said.
Production has grown to three boats a day, and there are now 125 people on payroll, he said. The expectation is that four to five boats will roll out each weekday in 2013.
“We hope in the next three to five years to be back to seven,” Correll said.
Fostering relationships with customers long after the sale is part of the process of building Tigé brand loyalty. Many dealers host reunions for Tigé owners to foster camaraderie and sharing of tips and tricks. Tigé also hosts an online forum for owners, welcomes them on factory tours and sponsors events worldwide.
This year the company is hosting a new competition for amateurs and professionals called Tigé MyWake Global Challenge. Participants submit a video of their wake sport ride, and a panel of judges will select the top riders for a live pro-am finals competition in September in Orlando.
For 30 years Correll has been in the boating industry, which he said usually goes through 10-year cycles of expansion to contraction and back. He believes Tigé is positioned to capitalize on the next economic upspring.
“I’ve been with this company six years, and I’ve never been with a finer company,” Correll said.
Genesis of Tigé Boats
To appreciate the entrepreneurial success of Tigé Boats, President Rick Correll tells the story of an aspiring competitor.
In the mid-1990s, Toyota launched Epic ski boats. Despite investing significant capital and hiring leading engineers and designers, Epic folded a few years later because of production and marketing miscues, according to epicmarine.com.
Charlie Pigeon of California started Tigé with a lot less fanfare. He had $85,000 and a passion for building a better slalom ski boat. The company name is a European-inspired derivative of Pigeon’s childhood nickname Tiger.
The initial prototype was started in a rented barn, and the first boat was made in leased excess space in a manufacturing facility. In 1991, Pigeon sold his first Tigé boat, the 2000slm Comp that was named “1992 Rookie of the Year” by WaterSki magazine.
“Charlie would build a boat, hitch it on the back of a truck and drive it across the country to sell it. Once it sold, he would then build another one,” Correll said.
In 1995, Tigé relocated to Abilene because of an incentives package from the Development Corporation of Abilene. Manufacturing took place in six buildings off U.S. Highway 277 north of town.
Pigeon continued to respond to trends in family boating, such as designing boats whose drag and ballast could be adjusted easily for emerging extreme water sports.
The DCOA later extended another incentives package of $4.6 million that enabled Tigé to build a 130,000-square-foot manufacturing facility and headquarters that streamlined production and doubled capacity. The second package included a 25-year, no-interest $4 million loan. The state-of-the-art facility opened in 2006 on State Highway 36 north of Abilene Regional Airport.
Although Pigeon now resides in Austin, he serves as CEO and remains active in company operations. His sons also are in the business. Sam Pigeon is a regional sales manager, and Blake Pigeon is a project manager, Correll said.
