Not Leaving Las Vegas

A couple years ago, during the Friday night of the Masters golf tournament, I was sitting down at a lawn table in someone’s Augusta, Georgia backyard I didn’t even know at an intimate gathering I’d been flown to on a private jet. I was getting ready to dig into a juicy, freshly-grilled ribeye when a gentleman asked if the seat next to me was taken… just as Jim Nantz (from CBS Sports and former college roommate of Fred Couples) was about to start telling stories to a crowd of no more than 50 people. Bonnie Bernstein from ESPN was Jim’s mic-runner, and Scott Van Pelt (also from ESPN) even volunteered to run the microphone a few times for questions from our small audience. How I got into that particular situation is a story for another time, but the gentleman who proceeded to spend the next 65 minutes chatting with me was a rather famous coach with a rather famous ex-student you may have heard of… Tiger.

So, Butch Harmon and I chewed the fat about his business, mine and golf courses around the country. What became very obvious to me was that he hated the courses in Las Vegas where his golf academy is located. This begged my question, “Why, Butch, do you have your academy there if you despise the courses so much, and you much prefer those in Florida, California, North Carolina and just about anywhere else?”

“Because, Chris, nowhere else can I charge what I want to make. When people come to Vegas, price pretty much goes out the window. They’re seeking and able to have the best experiences possible there, no matter how artificial those might be, so cost isn’t an obstacle anymore. I couldn’t get away with charging what I do if I did it near you in Orlando. There just wouldn’t be the demand for it. But, there is in Vegas. So, I tolerate these @$#%&$# courses.”

I’ve since kept Butch’s insights in mind whenever I visit Las Vegas and when I think about what my customers might want. And you know what? He’s was spot-on. Vegas IS different!

Where in the World Was I?

In mid-November, I visited Las Vegas for business and some pleasure. That’s what’s supposed to happen there, right? Now, I don’t know how much the national economic slowdown has affected Las Vegas statistically, but it appeared to have zero impact whatsoever as I got off my plane. The airport was more packed than I’ve ever seen it — and I travel to Vegas at least three times a year and have been doing so for many years. Some slowdown! It didn’t look like anyone was leaving Las Vegas.

I’m not much of a gambler, since I don’t particularly like it when the odds of winning a game are that much against me. So, Vegas doesn’t get my money in that way… it drains my wallet in other ways.

I was out there for the annual Restaurant Finance & Development Conference put on by Franchise Times. I’ve been going for more than five years and have always thought it’s one of the best conferences I attend every year – the venue, the speakers and the networking are always first rate. I go because about 15 percent of my core business (Mercantile Commercial Capital) involves financing franchise and non-franchise restaurant properties nationwide. I’ve spoken on panels there many times in the past, but this year, I was merely a spectator.

My second-favorite economist (who actually says such things?!?) kicked off the meeting. He’s Brian Wesbury, who regularly appears in the Wall Street Journal, on CNBC and in other media outlets. Brian’s take on our economy is that we should all be prepared for a “V-like recovery.” He said we nearly avoided dipping into a recession as late as August, but that the constant naysayers in the national media proved too much and helped create a self-fulfilling prophecy. With the Fed’s very loose printing of money at the moment, plus stimulus packages and still no bread-lines (what the national media would have us believe is imminent), Brian thinks we should get things moving in the right direction by summer ‘09.

Bill Taylor, author of the New York Times, Wall Street Journal and BusinessWeek bestseller, Mavericks at Work, and whose interview with me begins on page 10, moderated the next major session. Bill tried to keep Jimmy John Liautard (Founder of Jimmy John’s), Sally Smith (President/CEO of Buffalo Wild Wings) and Tom Davin (CEO of Panda Restaurant Group) in check and focused on “Why the Most Original Minds in Business Win” for nearly an hour. I always find it interesting to hear from people who defy the norms in their industry – those are usually the ones having the break-through successes. Everyone who doesn’t differentiate themselves suffers from a regression to the mean… they become average or even worse, mediocre. That’s not what you or I want – it’s just not what a Kennedy’s® man would accept.

The keynote speaker was Christopher Gardner, the real-life inspiration for the Will Smith-starring movie, The Pursuit of Happyness. What’s interesting about Chris’ speech is that it was nearly identical to the one I heard him give a couple years ago at the Golden Corral annual conference in San Diego. It’s a wonderful speech on perseverance and determination (much more than the movie could show in only 117 minutes), but it’s also a lesson in professionalism. Chris was such a great speaker with such a great story, and he’d practiced it all so well… it was like watching a great performance, really. Too many people in business, especially in sales, just “wing-it.” But the great ones understand the need for preparation, planning and performance. Mr. Gardner knew this and delivered. People lined up hundreds-deep to buy his book and get his autograph after his talk.

I hadn’t taken a trip with just my wife in about three years, so once we secured a babysitter, she flew out to spend a few extra days with me. Ever the planner, we kept very busy. We had great pasta at Rao’s, the famous New York-based Italian restaurant. Had fresh stone crabs at Joe’s for lunch one day in the Forum Shops at Caesar’s (the original, 95-year old restaurant is near South Beach in Miami). Had another very “interesting” meal at Charlie Trotter’s restaurant (Restaurant Charlie in The Palazzo Hotel) – he’s one of Oprah’s favorite chefs, if the name sounds familiar, and I had taken an old college buddy of mine to his flagship location in Chicago last year when I attended my first Inc. 500 conference. We also went to Bobby Flay’s Mesa Grill and had terrific southwestern fare. We saw Cirque du Soleil’s “LOVE” show about the music of the Beatles, the “Jersey Boys” about Frankie Valli and the Four Seasons, and saw Danny Gans before his long-running Vegas show came to an end late in November. All were terrific performances! But, truth be told, not all of these shows were necessarily my first choices – I couldn’t get tickets to some of my preferred shows even though I booked things in June. That’s how crazy Vegas was this time around!

You may be tempted to chalk it up to gambling being good in any economy, but remember: I wasn’t gambling. My wife and I were just going to nice dinners and shows… and everywhere we went, it was PACKED. I even managed to mystery-shop some “alleged” Kennedy’s® competition. I should have probably tried to fit in some golf lessons with Butch, but there just wasn’t enough time…

Our “alleged” competitor has been around for more than 200 years. They’re London based and have supposedly shaved the Royal Family. During my 45-minute turn in the chair, I was resoundingly unimpressed. I had high expectations; I’ll admit it. I thought their reputation was really something, and I thought I might learn a thing or two we could redeploy at Kennedy’s®. I learned a thing or two alright… about what NOT to do.

For starters, it was obvious that they were a product company, which also happened to provide grooming services — not the other way around like we are at Kennedy’s® – for the entrance gave way to a backroom that was disheveled and not nearly as well kept as you’d expect.

I got a respectable haircut until my barber had me hop out of my chair and lean, face-first, over her sink while she rinsed out my clippings. Water immediately rushed into my face and covered my eyes, nose and mouth. This wasn’t what I was used to back home. My barber handed me a towel to wipe off my face when she was done, noting that it happens every time and no one is ever prepared for it… hmmm, seems to me like she might want to mention that.

Next, I sat back for my shave. She leaned me back in my chair, put some pre-shave lotion on my scruff, put on a hot-towel and then lather, but didn’t bother to cover my eyes. What occurred next should be obvious: I tried to close my eyes, but I just kept watching her razor come closer and closer to scrape my face. At Kennedy’s®, we purposefully cover our clients eyes so they can’t watch and hopefully attempt to fall asleep – this makes for a much better overall experience.

I kept thinking something was missing during the first part of my shave, until my barber started on my neck. It was like sandpaper rubbing against my throat with every stroke she took. What was missing immediately came to my mind: the hot-water steamers. At Kennedy’s®, we use our hot, distilled-water steamers so our clients’ faces are keep moist and pliable. They don’t experience such a rough shave that a straight razor can sometimes give. Pores open-up when steam is blown on your face, so our barbers can give the closest shave possible with more exposed hair follicles and skin that is easier to manipulate. My barber did her best, but she was missing that crucial piece of equipment. I grimaced a few times, but I toughed it through the “dry” shave.

At the end, she offered me a bottle of water (we usually do that at the beginning of our Kennedy’s® experience), but offered no brief scalp or shoulder massage (again, like we do at Kennedy’s®). Now here’s the shocker: for all of this, or rather for only this, the price was $125 plus tip. For $140 dollars, this was a fraction of the experience you and I get every couple weeks at Kennedy’s®. And at Kennedy’s®, our highest-level membership doesn’t even reach that price-point.

So yes, Butch Harmon was right again: everything costs more in Vegas. But not everything is better in Vegas and certainly better values are out there… value like what you receive as a member of Kennedy’s®. Now you know what our “competition” does, or rather doesn’t do. And you now know how valuable that membership you have is. Feel free to share this “secret” with others as we grow our terrific concept.

About The Author:

Chris Hurn is currently President, CEO, Cofounder and Board member of Mercantile Commercial Capital (MCC). His company was recently added to the 2007 Inc. 500 list of the fastest growing companies in America, number 245 with 951% growth over the past 3 years. Chris is well-known for his innovative marketing achievements and continues to coach and consult with various business owners and entrepreneurs. To date, MCC has closed commercial loans in 31 states for over $350 million in total project costs – one business owner at a time, and has been voted “Best Place to Work” by the Orlando Business Journal for 3 years running.

A few other business achievements Chris has received:

Reader’s Choice Award for “Most Respected Executive in Central Florida” and “Best Small Company in Central Florida.”
“SBA Marketing Guru of the Year.”
NADCO’s Banker of the Year.
SBA Financial Services Champion.
Top Twenty Most Influential People in Small Business lending.
Hallmark Award for Top Producer in Mortgage Lending.
“Top Male, 40 Under 40″ in Orlando.
One of the “100 Most Influential People” in Orlando.

Throughout his career, Chris has been in various leadership positions, including his background as business consultant and financier with GE Capital and as CFO for the NAI RealVest group of companies. Chris’ educational achievements are equally impressive. He graduated from Loyola University with two magna cum laude Bachelor Degrees; earned a Master’s Degree from the University of Pennsylvania’s Fels Center (formerly at the Wharton School of Business); and only spent one year at Georgetown University Law Center before wising-up about becoming an attorney. Chris is a frequent speaker and writer and has appeared in the Wall Street Journal, Inc. Magazine, LA Times, the Sacramento Bee, the Orlando Sentinel, Scotsman Guide and many other regional and nationally-recognized trade publications. He maintains a busy civic calendar as a Board member with the Orlando Regional Chamber of Commerce’s Small Business Board and the Florida Hospital Foundation Board, as well his involvement with many other esteemed community organizations. Chris is married to his wife of 12 years, Shannon, and has two children, Reilly and Julianna.