Meet Lou Sandoval of Karma Yacht Sales

Today we’d like to introduce you to Lou Sandoval.

Lou, let’s start with your story. We’d love to hear how you got started and how the journey has been so far.
I started sailing at the age of 10 in Boy Scout camp in Whitehall, MI while pursuing my sailing merit badge. I loved the freedom of getting out on the water. I grew up on the far South Side- just blocks from Lake Michigan, but a lot of kids from my background didn’t get to experience the city from the water. I got away from the sport until I started my career in the biotech/biomedical industry where I was invited to sail on J-24 sailboats in Waukegan. The turns of my career took me from the Chicago area to Seattle where I got more into the sport. I developed a side business managing customer’s boats. This gave me access to various boats and sailing events.

I started sailing distance races such as the Vic-Maui race and Transpac. Races which went from Victoria, BC to Maui and Los Angeles to Honolulu, respectively. The bug bit me hard. I was drawn to the strategy in navigating these long races . My career took another turn as a promotion sent me to Miami where I was able to get into the sport even more participating in the Newport to Bermuda and various buoy races in the Miami /Southern Ocean Racing Circuit. I sold the boat management business in Seattle to a sub-vendor and started a second one after some time in Miami. My career would bring me back home in the mid 90’s where I joined a boat partnership with my brother and two other guys we knew from High school. It was an old 1978 little yellow boat that we spent more on than it was worth. After a few years, we pooled our resources and purchased a new 33′ sailboat that we named “Karma”. I made friends with the owners of the dealership and they invited me to work boat shows on the side. I learned of their desire to sell the dealership which coincided with a few changes in my professional career.  These changes came about from mergers and acquisitions of a larger corporation I was working for at the time. In 2002, we completed the deal for the purchase of the dealership and the fun began.

We’re always bombarded by how great it is to pursue your passion, etc – but we’ve spoken with enough people to know that it’s not always easy. Overall, would you say things have been easy for you?
It hasn’t been without change. We have survived the economic uncertainty of 9/11, and a couple of recessions. In 2016, we made the decision to part ways with the brand we represented for the past 15 years (and the previous company we purchased had for 23 years). A bit later in 2016, my business partner ran into financial difficulty and had to leave the business which posed its own logistical challenges. I decided to continue in the business which has challenged me to refocus the business and seek additional revenue models.

The boating business is a very dynamic model tied to disposable income. Boaters are very passionate about their sport. The power side of the business has been a bit quicker to bounce back than the sailboat side. Sailing is more of an acquired taste with more defined skill-sets and  has not grown at the rate of other on-the-water pastimes. The perceptions are that boating is sport of the wealthy. The perceived barriers to sailing have met generational challenges. Recent industry reports show that the millennial generation has been slow to take up the sport- despite its active outdoor type of lifestyle. As a comparison, that same generation has taken to the ‘let’s go camping’ call to action. RV industry figures show millennials make up 38% of campers, yet only 31% of the general population a ripe target for the RV industry. The RV industry has been a bit more responsive to creating value models for entering this market sector, thus lowering the economic barrier to participation.

The messaging has also been somewhat better received.  Millennials have bought in to the mobile lifestyle. Combined with changing vacation habits, they have helped spur the growth in mobile home sales.

On the converse, sailing (and boating as a whole) has grown modestly since the recession. The sales growth has been driven by volume in the higher size range as boomers trade up to bigger models. Smaller model growth has been stagnant or non-existent primarily from the drive by manufacturers to premier larger models that appeal to clientele that is already in the sport. A lower volume of boats sold from the recession to 2012 leaves a smaller inventory of appealing late models for resale. Inflation and the infusion of technology into newer models has made the new boat acquisition cost higher, self-limiting and appealing to a select few.

There are some optimistic signs though- Boating is transition from an owner only model to shared model with peer to peer and fractional ownership programs helping to get more people on the water.

2016 industry results show that 142 Million Americans participated in boating. This shared model has been a strong contributor to this transition. While a bit of a long term investment, the challenge for the manufacturer fueled industry is adjusting their overhead to survive a decrease in short term unit volume while capturing some of these newly found users and converting them to owners.

Adaptation to this model by industry stakeholders like yacht clubs is critical. Municipalities and private groups can assist in this as well. Chicago has few viable community sailing or boating programs that get kids out on the water. Those that exist appear very tribal and not accessible to outsiders. This has to change.

Another industry challenge that exists is a shallow skill based labor pool. Some trades are one generation deep and on the verge of extinction all-together. In Chicago, for example- there are few qualified marine electronics technicians and marine HVAC techs. This drives up the cost of labor and frustration among customers. It also makes the transition to mainstream and growth more drawn out. Can you imagine if you had to wait 8-10 weeks to get the A/C or heater repaired on your car and when you did it cost $500-800 to do so?

In hearing this, you might think-why is this guy still in it? Well, I’m passionate about it and still see a lot of upside. Chicago is a glorious site from the water. Experiencing our city from the lake is transformational. There are whole communities of kids in Chicago whose life might change if they saw the possibility that exists in life on the water.

Perhaps it is the entrepreneur in me- but my intuition tells me my role in this industry has still not been fulfilled.

We’d love to hear more about your business.
The past fifteen years have allowed me to meet some great people that I’m happy to call customers today. Our customer base comes from all walks of life from teachers and firefighters all the way to CEOs of major corporations.

Today, we deal in new power and sailboat sales for a boutique manufacturer. We do service, brokerage sales and marine consulting and concierge service. We represent a large geographic area encompassing the Western Great lakes and sell boats around North America and beyond.

As president of the company, my role varies from day to day. I manage our various subcontractors, sell product and work with our manufactured on the fulfillment of orders and delivery of the product to the consumer. As a broker, I represent clients and advise them on the sale of their boat.

Like realtors we work through a network of trained professionals to sell their boats.

I’m probably most proud of the recognition we have received throughout the fifteen years of being in business. The Karma Yacht Sales brand went from the name of a boat to a regional and national symbol of customer service. KYS been perennially ranked in the Top 10 dealerships in North America for Sales and have also been recipients of many industry awards for their focus on superior customer service. Knowing that was achievable in the past, gives me confidence that the business can grow again albeit perhaps in a new direction.

I believe in being an ambassador for the industry you work in. I took that role on when I worked for larger corporations and have brought that to running my own business. I’m active on industry boards that help with the growth and diversification of the market.

I’m active in the sport of sailing and have held some leadership roles in the sport having served as chairman of the venerable Chicago Yacht Club Race to Mackinac and other club-related roles.

What were you like growing up?
I’ve always been ‘outgoing’ in my personality style. I’ve been driven to accomplish what I set out to do and have learned to work with and lead different groups towards a common goal. I’ve always believed in remembering where you came from and believe in giving back. That has fueled my involvement in Scouting and youth based activities.

I’ve had a passion for Science since I was a kid. It took a turn towards the business end, but I still am very supportive of STEM initiatives. Few would guess that I was a science geek, when I was a kid.

I’ve always been an “outdoorsy” person, I like to sail, fish, camp, ski… You name it, if it can be done outdoors, I’ve probably done it

Contact Info:

• Address: 3434 E. 95th Street,
  Chicago, IL 60617
• Website: www.KarmaYachtSales.com
• Phone: 773-254-0200
• Email: info@karmayachtsales.com
• Instagram: https://instagram.com/karmayachtsales/
• Facebook: https://www.facebook.com/KarmaYachtSalesLLC/
• Twitter: https://twitter.com/karmayachtsales
• Yelp: https://www.yelp.com/biz/karma-yacht-sales-chicago-2
• Other: https://www.linkedin.com/company-beta/210828/

Getting in touch: VoyageChicago is built on recommendations from the community; it’s how we uncover hidden gems, so if you know someone who deserves recognition please let us know here.