Ryan Pape, the President and CEO of XPEL, has engineered one of the most remarkable growth stories in the automotive aftermarket industry. Taking the helm of a small, struggling software company in 2009, he transformed it into a global leader in paint protection film (PPF), window tint, and protective coatings, creating immense value for shareholders along the way. His leadership is a masterclass in strategic focus, relentless execution, and building a powerful brand in a niche market.

Through shareholder letters, interviews, and conference calls, Pape has shared a clear and consistent philosophy.

On Strategy and Vision

  1. Find a great product in a broken business. Pape’s journey with XPEL began by recognizing the potential of the product (PPF) while seeing the flaws in the existing business model. "What I saw was a great product category and a company that was failing," he said, seeing an opportunity to professionalize the industry.
  2. Focus is paramount. "We said no to a lot of things. We just did one thing." Early on, Pape divested non-core assets to focus exclusively on PPF, a decision that proved critical to their success.
  3. Go direct and own the customer relationship. "The most important decision we made was to go direct." Instead of relying on a complex web of distributors, XPEL invested in its own sales and distribution network, allowing it to control the brand message and customer experience.
  4. Create a "pull-through" strategy. "We want the customer asking for our product by name." XPEL invested heavily in marketing directly to consumers, creating brand awareness that "pulls" demand through their installer network.
  5. The software is the ecosystem. XPEL’s Design Access Program (DAP) software, which provides pre-cut patterns for vehicle panels, is the "Trojan Horse" that creates a sticky ecosystem for installers and a significant competitive advantage.
  6. "We want to be the best in the world at what we do." This is not just a platitude but a guiding principle that informs their decisions on product quality, training, and customer service.
  7. "We're in the business of selling peace of mind." Pape understands that they are not just selling a physical film; they are selling a feeling of protection and preserving the value of a customer's prized possession.
  8. "Growth is our number one priority for capital allocation." Pape has consistently reinvested in the business—in inventory, new locations, and acquisitions—to fuel XPEL's rapid expansion.
  9. Vertical integration where it makes sense. While XPEL doesn't manufacture its own film, it has vertically integrated in areas like software, distribution, and training to control the key levers of its business.
  10. "We're still in the early innings of this." Pape frequently expresses his belief that the market for PPF and other protective films is far from saturated, signaling a long runway for growth.

On Execution and Operations

  1. "Execution is our moat." While competitors can try to copy their products, Pape believes XPEL's true competitive advantage lies in its consistent, high-level execution across thousands of dealers worldwide.
  2. Get close to your customer. XPEL’s direct model allows them to have a "very tight feedback loop" with their installer base, enabling them to quickly adapt to market needs and improve their offerings.
  3. Training is a strategic asset. XPEL invests heavily in training new installers, which not only ensures a quality application of their product but also expands the total addressable market by increasing the number of skilled technicians.
  4. "Inventory is a weapon." Particularly during supply chain disruptions, Pape has emphasized the importance of having product on hand. "Our ability to supply is a huge competitive advantage," he noted during the pandemic.
  5. "We want to remove friction for our customers." Everything from the DAP software to the customer service and availability of inventory is designed to make it as easy as possible for an installer to do business with XPEL.
  6. Culture is built on performance. "We have a very performance-oriented culture. We reward people for delivering results."
  7. Maintain a "small company feel." Despite its growth, Pape strives to maintain an entrepreneurial and agile culture where decisions can be made quickly.
  8. "You have to earn it every day." He instills a sense of urgency and rejects complacency, knowing that past success does not guarantee future results.
  9. Data-driven decisions. The DAP software provides a wealth of data on installation trends, vehicle popularity, and geographic demand, which informs inventory, marketing, and expansion decisions.
  10. "Service, service, service." When asked about XPEL's key differentiators, Pape consistently points to the superior level of service and support they provide to their installer network.

On Competition and the Market

  1. "A rising tide lifts all boats." Pape welcomes competition that helps grow the overall awareness of the PPF category, confident that XPEL’s superior brand and execution will allow them to win a disproportionate share.
  2. "The biggest competitor is no film at all." He views the primary challenge and opportunity as converting car owners who have never considered PPF, rather than fighting with other brands over existing customers.
  3. Brand is the ultimate differentiator. "In a category where the product is largely invisible, the brand is everything."
  4. "We don't lead with price." XPEL positions itself as a premium product and competes on quality, service, and brand trust, not by being the cheapest option.
  5. "The fragmentation of the installer base is an advantage for us." By providing a comprehensive platform of products, software, training, and support, XPEL becomes an indispensable partner to thousands of small, independent businesses.
  6. "The new car dealer is a massive opportunity." XPEL has made a concerted push to partner with automotive dealerships to have PPF installed as a pre-delivery option, tapping into a huge new sales channel.
  7. "The 'Tesla effect' has been a huge tailwind." The rise of electric vehicles, with their tech-savvy and passionate owners, has significantly boosted demand for paint protection.
  8. Don't underestimate the power of word-of-mouth. "Our best marketing is a happy customer showing their friend how their car protected itself from a rock chip."
  9. Look for adjacent markets. XPEL has successfully expanded from automotive PPF into window tint, architectural film (for homes and offices), and protective films for electronics, leveraging its brand and distribution network.
  10. "We want to own the surface." This reflects a broader vision of protecting any high-value surface, whether it's a car, a building, or a boat.

On Leadership and Financial Discipline

  1. Be intellectually honest. Pape is known for his candid and transparent communication with investors, clearly outlining both opportunities and challenges.
  2. Align incentives. As a significant shareholder himself, Pape’s interests are directly aligned with those of his fellow investors.
  3. "We run the business for cash flow." While managing for high growth, he maintains a sharp focus on profitability and generating cash.
  4. Maintain a strong balance sheet. Pape has been prudent with debt, ensuring the company has the financial flexibility to weather downturns and seize opportunities.
  5. "M&A is a tool, not a strategy." XPEL has made numerous acquisitions, but they are always strategic—aimed at acquiring distribution, entering new geographies, or adding a product line—rather than financial engineering.
  6. When acquiring, buy your own customers. Many of XPEL's acquisitions have been their own independent distributors, which makes for a smoother and lower-risk integration.
  7. "Say what you're going to do, and then do what you say." This focus on credibility and delivering on promises has earned him the trust of the investment community.
  8. Think like an owner. He encourages his team to treat the company's resources as if they were their own.
  9. Be accessible and transparent. Pape regularly engages with investors and is known for his straightforward, no-nonsense communication style on earnings calls.
  10. "The best is yet to come." This is a common refrain, reflecting his genuine optimism and long-term vision for the company.

On Personal Learnings and Mindset

  1. "Embrace the grind." Building a great company is a marathon that requires relentless effort and attention to detail over a long period.
  2. Stay curious. He is constantly learning about his industry, his customers, and new technologies.
  3. Humility is key. Despite XPEL's success, he avoids arrogance and acknowledges that there is always room for improvement.
  4. "Problems are opportunities in disguise." He views challenges not as setbacks, but as chances to strengthen the business.
  5. Passion for the product is infectious. His genuine enthusiasm for what XPEL does inspires his team and his customers.
  6. "You can't do it alone." He frequently gives credit to the entire XPEL team for the company's success.
  7. Long-term value creation over short-term gains. He consistently makes decisions that are in the best long-term interest of the company, even if they don't provide an immediate payoff.
  8. The power of a simple, repeated message. XPEL's marketing and internal communications are built around a few core ideas that are repeated relentlessly until they are ingrained in the culture.
  9. "Control your own destiny." The decision to go direct was fundamentally about taking control of the brand and the customer relationship, a theme that runs through his entire strategy.
  10. It all comes down to trust. "The installer has to trust us. The end customer has to trust the brand. Everything we do is built on earning and keeping that trust."