Shoring up sales in tough times
A Wisconsin travel firm boosts its profits by offering top clients some tender loving care.
(Fortune Small Business) -- When Fortune Small Business last met with Julie and Barry Karp ("Lure 'Em to Shore," February 2008), their Glendale, Wis., travel business, ShoreTrips, was seeking to boost market share in the cruise ship tour business. Revenue increased 56%, to $7.5 million, in 2007, but the Karps were convinced they needed to find more profitable new customers.
Wrong attitude, one expert told them, encouraging them instead to devote more time to developing relationships with their best existing clients. Julie, 58, and Barry, 61, followed that advice to the letter and are pleased with the results.
"We sent out gift certificates on Valentine's Day to the agents we felt were most important to us, and we now take time to chat on the phone with clients," says Julie, who notes that the company will also occasionally absorb costs, even those resulting from an outside travel agent's mistake, in order to maintain good will. That's gained them more business and even some referrals to new customers.
"We've tried to build friendships, and that's paid off," Julie says.
Before the Makeover, the Karps were having difficulty finding good employees, their record-keeping software bungled calculations, and their website crashed occasionally. Following another expert's advice, they have tried hard to sell their firm to job applicants. They now mention travel opportunities - a perk - in job postings, and have sweetened their starting salaries. As a result, the Karps recently snagged three great new employees.
At the suggestion of FSB's tech expert, the Karps are about to launch a website that is more user-friendly, and they have hired a full-time IT technician to maintain it and the database. It's been a drastic improvement.
"We have no downtime now," says Barry.
With more travel agents on its client list this year, ShoreTrips expects about $10 million in 2008 revenue and an extra $100,000 in profit. The couple are also eyeing new horizons in Europe and hope to start marketing to travel agents there within the next year.
All in all, the Karps are going places. 
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