Another NHRA money grab? (1 Viewer)

[jimbo]

I'm not one to join sides in crying foul against NHRA but...
On a note on Dragracing Online Agent 1320 the following was reported:

Sources on the NHRA tour tell DRO that recently the folks in charge of charging vendors (especially T-shirt venders) to set up on the midway decided that they just weren’t getting a big enough piece of the pie. Sources say the NHRA told their vendors that the fees to park on the Midway would be raised to $6,500-$7,500 plus 30 percent of gross sales.

According to our sources, a couple of major owners who support multiple pro teams and have apparel trailers were more than just a little upset and threatened to bail out. The Agent was told that after negotiations the fees are now $2,500 for the space rental plus 20 percent of their gross sales. NHRA will revisit the issue after the end of the racing season. [05/09/11]

If this is correct how can any racer or team owner not be furious with NHRA intentions of grabbing every last nickel from them, but not giving back in the form of purse money, entry or just not poaching their sponsors for this or that NHRA official sponsor program, that is lining NHRA 's pocket.

Granted the tshirt business is booming as you, I and the many thousands of us buy these shirts and other racer trinkets by the truck load, but come on they want not only the upfront rent but 30% of the gross too. Maybe IT IS TIME that the IRS looks into their books and staus!

 

[Jim]

Not clear from your note: How much WAS the cost for the space.

I have no idea how $2,500 plus 20% relates to current (rather expiring)deal. Assuming it is MORE than the expiring deal, $7,500. plus 30% woulda' been quite a pop.

That said, $2,500. plus 20% doesn't seem excessive. Captive audience.
Don't know if there are any adjustments for weather, cancellations, whatever.
You're not expecting NHRA to let valuable revenue generating opportunities go to waste, are you?

On edit: Re-reading your post, you were quoting DRO - My apology.

 

[Bullard Anderson]

I've always used the trailers for viewing potential buys then going online to get it.

 

[NCC250]

I've always used the trailers for viewing potential buys then going online to get it.

I would guess NHRA has seen this and that is why they were looking for more upfront and a bigger percentage on the back side.

 

[Toejam]

NHRA has No way of tracking what these teams sell online! A lot of teams have opted to back out of the Track side souvenir trailer deal for that reason! You see fewer trailers now than you did 3-4 years ago!

 

[jackass]

yeah the NHRA's vendor policy is reported to be one of the worest out there for a major league sport.. percentage wise... at one time when the IHRA was a full racing program with all the classes they had nearly double the number of t-shirt and other vendors...(which adds to the fans experiance,,,,

never understood the want the money now .. all of it... form of thinking... to me lower cost to the vendors means more vendors which means more profits in the long run....

 

[HEMI6point1]

never understood the want the money now .. all of it... form of thinking... to me lower cost to the vendors means more vendors which means more profits in the long run....

Yeah but the suits don't see it that way.... typical short-term beancounter attitude.

 

[Professor Dave]

Also remember that T-shirt vendors were already getting squeezed by the higher price of cotton affecting the cost of T-shirts to them. NHRA may need to hire a macroeconomist to keep them informed of economic conditions! I've know one of those guys my entire life!

 

[mick]

first increase attendance, then raise souvenir prices.
increase volume = increased gross = future increase in vendor fees........
in that order.

 

[Ugly one]

never understood the want the money now .. All of it... Form of thinking... To me lower cost to the vendors means more vendors which means more profits in the long run....

DING, DING, DING we have a winner

 

[Larry]

first increase attendance, then raise souvenir prices.
increase volume = increased gross = future increase in vendor fees........
in that order.

Tee Shirt sales grow when people see them and want one.
Get the price right and sell more which in turn sells even more.
NHRA is like the Government ! Pricing themselves right out of a lot more sales and profits.
And what is the other effect of those Tees out on the street !

DING ! People see them and want to go !

 

[nick name]

While I don't like seeing anyone's pocket get picked, this isn't the worst move I've seen made. Either a lot of you are new or have bad memories, because in the past racers couldn't sell their shirts at the racetrack at all.

Not very long ago, the exclusive right to sell souvenirs was sold by the NHRA to a single company. They were the only ones who were allowed to sell any memorabilia at the track, including T shirts. The NHRA deal at the time was that you would sell your shirt to Sports Service for less than $4.00 and then it would be retailled for $15.00. One team I was familiar with had almost $3 in the graphics, shirt, and printing.

This made the Canadian race very popular with the pro teams since the contract wasn't in effect in Canada. More than a few paid for the last half of the season just from being able to keep the proceeds.

All the racers moaned, but only a few tried to do anything about it. WJ and Jerry Eckmann outfitted their own trailer which would be parked as closely as possible to the entrance of the track.

So, it's been worse. Much worse.

 

[Kansas Stan]

It's also been better.....before that....much better when racers could sell their own shirts out of their own trailers before big brother decided like everything else...that they wanted their share. I remember the transition period of the early eighties when, if you kept your eyes peeled, could still spot the occasional "blackmarket" shirt hanging uncerimoniously from a trailer door...no pricing...you had to ask. It's just become a grabby, nasty business which is why I spend my time at events like CHRR instead. It's a shame cause it doesn't have to be like that and the suits continue "enhancing" their reputation of rip off kings while our sport takes the hit.

 

[jimbo]

While I don't like seeing anyone's pocket get picked, this isn't the worst move I've seen made. Either a lot of you are new or have bad memories, because in the past racers couldn't sell their shirts at the racetrack at all.

Not very long ago, the exclusive right to sell souvenirs was sold by the NHRA to a single company. They were the only ones who were allowed to sell any memorabilia at the track, including T shirts. The NHRA deal at the time was that you would sell your shirt to Sports Service for less than $4.00 and then it would be retailled for $15.00. One team I was familiar with had almost $3 in the graphics, shirt, and printing.

This made the Canadian race very popular with the pro teams since the contract wasn't in effect in Canada. More than a few paid for the last half of the season just from being able to keep the proceeds.

All the racers moaned, but only a few tried to do anything about it. WJ and Jerry Eckmann outfitted their own trailer which would be parked as closely as possible to the entrance of the track.

So, it's been worse. Much worse.

Yes you are right, back in the 70's when I frequented alot of the races you were lucky to even find a Tshirt for sale. If you had a in with some of the teams you could get one for about $8.00 or so. If really lucky and you had a good rapor with a team you could even get a free shirt or swap a photo for one.

I've seen JF at Norwalks night of Fire show up with cases upon cases of shirts and be sold out before 6pm. That's alot of shirts at $20 - $25 a pop. And not begrudging JF anything, that's on top of widely reported $50,000 - $60,000 appearance money.
Sure keeps the cotton growers busy!

 

[mw6789]

Not clear from your note: How much WAS the cost for the space.

I have no idea how $2,500 plus 20% relates to current (rather expiring)deal. Assuming it is MORE than the expiring deal, $7,500. plus 30% woulda' been quite a pop.

That said, $2,500. plus 20% doesn't seem excessive. Captive audience.
Don't know if there are any adjustments for weather, cancellations, whatever.
You're not expecting NHRA to let valuable revenue generating opportunities go to waste, are you?

On edit: Re-reading your post, you were quoting DRO - My apology.

$7500 and 30% is insane. Greed at its finest.

 

[paoldtimer]

Directly from the Dover International Speedway site:

Q: How much does Dover International Speedway charge merchandise vendors?
For a 10 ft. by 10 ft. tent location, there is a $2,500 setup fee and 25% commission for sales above $10,000. For a 40 ft. trailer location, there is a $5,500 setup fee and 25% commission for sales above $22,500. If you have a need for another location size, please contact us at [email protected] to determine the pricing level. Please note that pricing levels are subject to change at the sole discretion of Dover International Speedway.