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The Changing Market:
The Luger brothers were keenly aware the business of selling and designing boats was ever changing, and Luger Industries kept pace with advances in marine engineering and boat design. Many model changes were made to keep up with improved processes, but just as often styling characteristics were the reason for the change:
"Remember when cars had fins?
We added fins to some of our powerboats too,
because back then boats often imitated car design."
Keeping a fresh and modern look to their boats was as important as staying current with the best construction techniques. New models were added and others dropped from production as the tastes of their customers changed.
By the seventies, Luger made the decision to build upon their success with powerboats, and committed to an expansion into sailboat kit production. Interest in sailboat kits was tested with a 14' sailer in the early 60s, and with its success and growing appeal, sailing inventories increased. Orm Luger believed the public looked to sailing as an alternative to powerboats because of the gasoline situation:
"The oil embargos of the seventies
seemed to push the sales of sailboats,
so we expanded their development."
Once again the Luger brothers had recognized a market change, and adapted. As sales increased, sailboat inventory was expanded. Powerboats remained their backbone, but soon the sales of assemble-it-yourself sailboat kits equaled those of the powerboats - and Luger's reputation as the "company of choice" for powerboat and sailboat kits was established.
Do One Thing, and Do It Well:
Luger Industries' one and only business was designing and selling boat kits to boating enthusiasts. Because they specialized in one thing, and only one thing, the Luger brothers were able to turn their attention to the sole objective of producing the best boats for use in fresh and salt water.
Ren and Orm Luger had lived in 'boating country' practically all their lives, and together they constructed many boats. From personal experience, they knew the problems facing anyone building a boat from scratch. Those early years of "cut, fit and try" proved to be a valuable education. The Luger brothers knew that the precise cutting and measuring of the wooden framework was the hardest part of boat building, and firmly believed that anyone could assemble a boat from a properly organized kit - - and by assembling their own boat, purchasers could save half the cost of comparable factory-built models.
The kits, when assembled in accordance with assembly instructions and outfitted with recommended equipment, complied with the requirements of the U.S. Coast Guard and the U.S. Dept. of Transportation. Luger boats were also designed to conform to recognized marine industry practices with regard to load capacity, horsepower ratings, engine and fuel compartment ventilation, running lights and flotation.
The hulls of Luger boats were designed by naval architects and engineered to the highest maximum specifications of safety, seaworthiness and comfort. Over the years, Luger kits were re-engineered and refined many times, as customer tastes and industry standards changed.
Invest in the Future:
In 1970, Luger Industries announced expansion of their production facilities in Burnsville, Minnesota. The new 120,000 square foot warehouse enabled the entire operation to be conducted under one roof - within a single 10-acre manufacturing complex. This not only allowed immediate shipment from warehouse stock, but guaranteed complete control over the quality of materials, production and shipping.
And to serve their customers better, a state-of-the-art Control Data electronic computer was installed to assure precise and constant control of their inventory, order processing and production. Advances in business technology were incorporated alongside updates in production and shipping facilities and methods.
The Burnsville location (a Minneapolis suburb) became the company's factory showroom, and a full display of completed boats could be seen there. Visitors enjoyed seeing the finished boat kits, and anticipated the day their own boat would be completed. The showroom welcomed visitors with established weekday hours, but appointments could be made for weekend or holiday visits if needed. Located within 15 minutes of the Minneapolis/St. Paul International, if customers flew into the airport, Luger would provide the ground transportation to their showroom and return them after their visit.
Later, as demand warranted and sales peaked for the molded fiberglass kits, additional manufacturing facilities were strategically located throughout the United States (California, Florida, Minnesota, Pennsylvania and Oklahoma). This enabled much faster and less expensive shipping. Often customers chose to purchase a trailer, and pick up their purchases from the closest Luger production facility - and save freight charges. These additional sites helped the company meet the growing demand for their fiberglass products, but their Burnsville location remained the company's showroom and base of operations.
Pride in a Job Well Done:
Low cost was not always the reason customers chose to purchase a Luger boat kit: Many kits were assembled by business and professional people who could easily pay the high cost of a factory-built model. These owners assembled kits for the diversion and relaxation borne of working with their hands - - and for the pride and satisfaction of creating something useful and beautiful.
An extra advantage to assembling your own boat kit was the ability to make modifications to suit any special need of the builder. This was something that couldn't be found in factory-built boats - except at high additional costs.
The personal satisfaction that comes when an owner assembles a boat kit cannot be measured. Builders of Luger kits seemed to have far greater pride in their craft than people who bought their boats pre-assembled. Assembling a boat and launching it in the water for the first time was one of the most gratifying and memorable experiences of an owner's lifetime.
By the 1960s, Luger Industries
was recognized as one of the
Top Ten Names in American Boating
Ren and Orm Luger could be proud of the company they built. Both brothers did a variety of tasks, and not all of them were directly related to boating. Ren, as president, handled sales, promotion and advertising. These duties included the photos and text that appeared in the catalogs, fliers and other advertising mediums. He recalled spending hours with each annual catalog, proofing pictures and checking text at the printer, to insure each year's catalog represented Luger Industries accurately and professionally. Orm, acting as vice-president, concentrated his attentions to the supervision of the design and manufacturing teams, and coordinated the efforts of the facility's 100 employees. Although each brother had an area of responsibility, Ren was quick to add,
"Actually, our positions within the company
were equally important, and our
overall responsibilities were a shared one.
After the new complex was built, the close proximity of their offices to the boat production operation allowed the brothers to work as a real team - and little was done without the other's approval or knowledge. Added Ren, "If a design were changed, or a model was dropped, we made those decisions together." Since the entire manufacturing operation was within one building, consultations with designers, the sales team, or between the brothers could be conducted simply walking into an adjoining room or just down the hall.
Luger's class of 21' to 30' cruiser/racer sailboats were all designed by well known design firms in collaboration with the Luger staff. And knowing sailors enjoy participating in sanctioned regattas, these cruiser/racer sailboats qualified for MORC racing. Founded in 1954, the Midget Ocean Racing Club is a long-established group dedicated to the ideal that different types of boats can be fairly raced using a measurement rule to handicap.
Luger Industries supported and followed the interests of professional organizations in both the boating and marketing industries. Sustaining memberships were held with the Boating Industry Association (BIA) and National Marine Manufacturers Associations (NMMA). These were highly regarded non-profit organizations established to protect the interests and safety of the boating public, and boats were designed and constructed in accordance with the associations' strict standards. Luger Industries was also a member and supporter of the guidelines established by the Ethics Committee of the Direct Mail/Marketing Association (DMMA) - an organization established for the protection of mail order buyers, and the National Association of Engine and Boat Manufacturers (NAEBM).
In a relatively short time, the two brothers had created prosperous careers. In 1952, Luger realized sales of $10,000 their inaugural year - an impressive amount by 1950 standards - and for a business just getting its start. By the second year those numbers increased nearly five-fold, and totaled $49,000. By 1957 (their fifth year) sales reached $500,000. With the introduction of their popular fiberglass kits, business increased at a rapid pace and sales peaked at three million dollars by the early eighties. Luger had, indeed, tapped into a needed market and found a receptive public.
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