Black Pine Spas & Billiards

The working relationship of Michael Nekahi and his business partner, Khasha Mekanik, goes back to college when a group of business students, with the help of a University of Washington program, started a student travel business, which they sold in 2001. Then Nekahi and Mekanik began working for a new reverse-supply-chain management company, which handled returns for big retailers and manufacturers. After that the pair began looking for a local business they could purchase together, and after searching across many industries, they landed on a hot tub store.

“We saw an opportunity,” Nekahi says. “We had both had a technology, sales and marketing background, so we kind of stepped into those roles here at the company.”

Even though there was a learning curve to get started in the spa business, the varied background and experience from the other companies they’d worked for prepared them well.

“Neither of us have ever been employed by anybody but ourselves,” Nekahi says. “So that self-motivating entrepreneurial spirit is what translates into doing finances well, doing your sales well and doing your operations well.”

Of course there are specific skills that have contributed to the company’s success.

“I think other things that have kept us ahead of the curve is knowing how to market, knowing how to get in front of people,” Nekahi says. “We have a very disciplined sales approach. We have a high closing rate; we don’t typically lose customers. We have great customer retention and we have great customer acquisition. Those two things, hands down, make us very effective.”

In a region known for its large and well-respected hot tub retailers, Nekahi says they still have been able to carve out market share, even with their single location, because of all the events they do.

Nekahi says they are fortunate to be in an area that has weathered the recession well. “We are very lucky that we have Microsoft, Starbucks, Boeing and Costco based here in Washington. These corporations employ a lot of people and are still doing well in this economy. I think we do things well here at Black Pine, but it’s all relative. We still have a steady flow of buyers in our market.”

Another plus for Black Pine Spas is an excellent retailer/manufacturer relationship. Nekahi says a key component of its success has come from sourcing the right product and the right manufacturer. “In 2008, businesses were seeing 30 to 50 percent decreases very quickly, and a lot of companies couldn’t react that fast to it,” he says. “I have to credit Artesian Spas for developing the right products for this economy and making certain options and price points available to accommodate a buyer in this market.”

Black Pine’s owners call the hot tub industry fun and rewarding, which makes them want to dig into everyday operations even more.

“We work in the business and we try to work on the business,” Nekahi says. “But what I like about that, and I think [Mekanik] may agree, is that it keeps us close to our customers and it keeps us close to our employees. We are very hands-on owners.”