I keep hearing this phrase and I wonder if anyone can briefly describe to me how this works. It seems to me, if a car owner does business with an organization, in exchange for funding his racing operation, The car owner still has dole out some cash one way or another !! To me, this appears to be, just a 'break even' transaction, and I'm not sure how the owner comes out ahead ?
Nitromater
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Business to Business sponsorship deals ?
- Thread starter camaro
- Start date
none
Nitro Member
Let's say you have a string of quick lube centers and you buy oil from Reinhart Oil. You spend half a million dollars a year buying oil that you then sell to your customers in the form of a Lube, Oil, Filter service. Reinhart Oil has no interest in racing.
If you approach Lucas Oil and say, I will spend this half million to buy your oil, but I would like you to help with my racecar. If Lucas agrees, then he is gaining a big annual sale, and you are getting help with the car. Lucas is gaining the exposure of being on your car at the track where he wants to be.
You are spending money to buy oil that your were already spending. Lucas is spending money to get exposure at the races that he was already spending. You gain a sponsor, Lucas gains a customer, Everyone is benefiting
That's a classic example of a B2B deal.
Alan
If you approach Lucas Oil and say, I will spend this half million to buy your oil, but I would like you to help with my racecar. If Lucas agrees, then he is gaining a big annual sale, and you are getting help with the car. Lucas is gaining the exposure of being on your car at the track where he wants to be.
You are spending money to buy oil that your were already spending. Lucas is spending money to get exposure at the races that he was already spending. You gain a sponsor, Lucas gains a customer, Everyone is benefiting
That's a classic example of a B2B deal.
Alan
none
Nitro Member
Everyone is benefiting except Reinhart Oil. Unless Lucas Oil is a subsidiary of Reinhart Oil?!
Fireball
Nitro Member
Everyone is benefiting except Reinhart Oil. Unless Lucas Oil is a subsidiary of Reinhart Oil?!
Did you miss the part that said Reinhart Oil had no interest in racing?
stitcherbob
Nitro Member
Where do I go to get me some of that Reinhart Oil ? Sounds like real slick stuff!
I hear it cleans up off of racing surfaces real nice!
I hear it cleans up off of racing surfaces real nice!
JF
Nitro Member
It all sounds great until reality sets in, NHRA finds out there is a deal being considered to sponsor a race car. NHRA has their people go behind the racers back and talk with the sponsor. It promises, why sponsor one car, when you can sponsor the series or a race and reach many more people than one car will. NHRA wins a new sponsor and the racer who made the initial contact is standing outside with NOTHING!
OR you have a product company that wants to put 1.2million into your team and is told that X product is the official product of NHRA and sorry you can't play here.
OR you have a product company that wants to put 1.2million into your team and is told that X product is the official product of NHRA and sorry you can't play here.
The Counterfeiter
Nitro Member
Or . . . you have a bunch of 747's that fly worldwide and are associated with a worldwide shipping company - Very nice analogy Alan!
Very nice analogy Alan!
none
Nitro Member
No. There was no mention that Reinhart Oil was sponsoring racing, merely that they weren't interested in it. But they did lose half a million in sales.
Sean D, shondoo
Nitro Member
That's just part of the gig sometimes. We utilized the same type of deal with our local/regional level racing operation years ago. Pops had a very successful auto repair shop in our small town, and obviously spent quite a bit of money on parts over the years. He was partial to one particular parts house for the most of his career, and when he approached them about helping us out a little bit, they balked, and did so in a very unprofessional way. He got pissed and told me to explore other options. And we're talking about a VERY small amount of money in comparison to what he was spending back then.
Bottom line, he moved his parts business, as well as all his OE stuff, and we ended up with two sponsors in exchange for his business and the relationships lasted over several years.
Sean D
StockersRock
Nitro Member
Bernstein's Budweiser deal
