JFR Finally Puts out a Release (1 Viewer)

[65 Goatboy]

Not arguing, just discussing. You are operating on the assumption that TV exposure is what the sponsor is after. What if that's not the goal?

For some being seen on TV is a bigger part than others, but for some being on TV is nice, but it's not where the sales come from. And it's not what the deal is based on.

The ARMY for example, wasn't there because they thought that someone seeing Tony win on TV would make them want to join the ARMY. If Tony did win, and spend time on TV that was a bonus but the main focus of the ARMY was recruiting. Tony every week spoke to the high school and college students that came out to the NHRA "YES" (Youth and Education Services) program. Tony also made a couple of hundred speeches a year as a "recruiting agent". That's what the sponsorship was driven by. If Tony had never won a race, but was successful it getting young people to look at the ARMY as an option out of high school or to continue school he did his job. And he did it well enough to keep them involved for 20 years.

If the only goal is to be seen on TV, then as a sponsor, buy adds that run in the program. You are guaranteed to see your name on TV during the races. And if you buy 6 adds over the two hours, your adds will run, there no chance that after the first half hour you won't be seen again.

Kenny Bernstein was one of the first who really perfected the art of pit-side hospitality. In the early days, the name on the car and the car on TV as well as doing appearances and such was enough. But Kenny realized that there was much more out there. This is an over simplification but it worked kind of like this.

Kenny calls the local distributor, and says "How would you like to offer your customers a day at the races with VIP treatment as a member of the team? I have 25 available per day. Meet and great, pit tour, picture with me, team shirt, etc." The cost is X

The distributor calls his customers and makes that offer to them. But, in order to get the package they need to sell more Budweiser. So if it's a bar, they make it a Happy Hour Special for the month, or every BUD purchased gets you into the drawing for something. Maybe even sell X amount and Kenny will come to your bar on Thursday before the race.

If it's a convenience store chain, they put Bud on sale for a month. They put up a KB cardboard cutout, or a signs in the window. Whatever they have to do to sell more beer.

Kenny has now helped the local distributor sell beer, that's good for corporate as well. And If he wins? That's a bonus, if he loses 1st round, Budweiser has still gotten their monies worth.

That's just one example.

Alan

Your spot on. If i'm going to buy Peak antifreeze is it because I saw it on the side of Force's car? No, it's because he was standing at the ropes, he signed my hat, and spoke to me. Am I going to buy a Snap-on tool because I saw it on the side of a car? No, it's because Cruz was riding on my local Snap-on dealers truck, walked into my shop shook my hand and talked to me. It's all about the people and how they interact with the customers.

 

[FABMAN]

Here's an example everyone should be able to relate to. Forney Field needs a new scoreboard could be a college, high school, doesn't matter. They want a fancy one with hi-def graphics and a message board. It's going to cost 1 million dollars that the school doesn't want to spend.

Morgan Tire and Auto Service has 9 locations in the community and Morgan graduated from Forney so he wants to help. Morgan agrees to buy the new scoreboard in exchange for it being labeled with his company. Also, the stadium announcer will refer to the replay being shown on the "Morgan Tire and Auto Scoreboard" We've all seen that in some form, right?

But here's the part that isn't made public, as part of the deal for 5 years the school now will buy all of it's tires from Morgan Tire and Auto Service, as well as alignments, brake service, and whatever else that they would be paying someone to do anyway. The school gets the scoreboard, Morgan gets the advertising and the goodwill because everyone who goes to the school or graduated from it will want to support the guy who "Donated" the scoreboard. And Morgan gets the school's business.

Alan

Sounds Like Lucas deal with City of Indianapolis

 

[Greggo]

Alan - I got some puzzled looks from the Quick Lane guys today when I requested Reinhart Oil for my oil change.
Just tryin' to help.

 

[zippy]

To Alan's point, in regards to B2B relationships with sponsors, here is an interesting article about the Indy Car series struggles which correlates in many aspects with the NHRA or any motoraport frankly in this environment.

https://www.yahoo.com/autos/indycar-team-owner-says-were-160100397.html

 

[drag racer]

Alan - your hypothetical sponsorship examples have been very informative! Thank you.

 

[none]

Thats why some of the better funded teams have display cars! I remember I went to a Ozzfest at shoreline and Jerry Toliver had his display car on the grounds! It garnered a lot of attention for the crowd with the race in Sonoma happing the following weekend.

Bob,

If a team has a show car program that is either in the main contract, or (more likely) the team has more than one contract. This goes back to the activation part. If Pellegrini Auto Parts wants to sponsor my team and as part of the deal wants me to display at his local distribution points two weeks before the event comes to town. We both know that this can't be done with the race car which will be competing in Topeka while the show car is working in Denver. So there is a contract for the race team to be at the track competing, and a contract spelling out the schedule and itinerary for the show car. That's a separate deal.

The guy who was at one time the Jeff Gordon show car driver was a friend of mine. He had a dually and trailer and ran all over the country a couple of weeks in front of the NASCAR circuit. He would go to a Chevrolet Dealership, or a DuPont Distribution center unload and hang out for the day talking to fans/customers. He was knowledgeable about the car, how the team was running, even the sponsor products to a point. So when a fan asked a question, he could answer it. He told me once that in three years on the job the only race he ever attended was the last race of the season, because very other week, he was in the next town when the race was running. His only real connection with the race team was when he needed a "new" show car which was always a retired race car. He would go to the campus in Charlotte and swap out cars. He operated completely independent of the race team.

The there's the personal services aspect. Another completely separate deal from the race contract.

Alan

 

[Pete]

Bob,

If a team has a show car program that is either in the main contract, or (more likely) the team has more than one contract. This goes back to the activation part. If Pelligrini Auto Parts wants to sponsor my team and as part of the deal wants me to display at his local distribution points two weeks before the event comes to town. We both know that this can't be done with the race car which will be competing in Topeka while the show car is working in Denver. So there is a contract for the race team to be at the track competing, and a contract spelling out the schedule and itinerary for the show car. That's a separate deal.

The guy who was at one time the Jeff Gordon show car driver was a friend of mine. He had a dually and trailer and ran all over the country a couple of weeks in front of the NASCAR circuit. He would go to a Chevrolet Dealership, or a DuPont Distribution center unload and hang out for the day talking to fans/customers. He was knowledgeable about the car, how the team was running, even the sponsor products to a point. So when a fan asked a question, he could answer it. He told me once that in three years on the job the only race he ever attended was the last race of the season, because very other week, he was in the next town when the race was running. His only real connection with the race team was when he needed a "new" show car which was always a retired race car. He would go to the campus in Charlotte and swap out cars. He operated completely independent of the race team.

The there's the personal services aspect. Another completely separate deal from the race contract.

Alan

Growing up and living in NH, I always enjoyed the show car circuit coming in a few weeks prior to the Loudon races...it was a blast for the kids, when we couldn't goto the race

 

[none]

Growing up and living in NH, I always enjoyed the show car circuit coming in a few weeks prior to the Loudon races...it was a blast for the kids, when we couldn't goto the race

Pete you've been around long enough to understand that the job of the show car is two fold. First, generate interest for the upcoming event by building excitement. (Here's the car up close, come out to the track and watch it race). The second is to drive traffic. Just to use round numbers, if 500 people come to the Dealership to see the car a few of them are going to see something on the lot and turn into potential customers. And any salesman will tell you that the more traffic he gets the more chance he has to make a sale.

If the dealer does a promotion like "Buy a car and get tickets to the race" then he can leverage that as well, one more tool to drive sales.

Alan

 

[FABMAN]

Bob,

If a team has a show car program that is either in the main contract, or (more likely) the team has more than one contract. This goes back to the activation part. If Pelligrini Auto Parts wants to sponsor my team and as part of the deal wants me to display at his local distribution points two weeks before the event comes to town. We both know that this can't be done with the race car which will be competing in Topeka while the show car is working in Denver. So there is a contract for the race team to be at the track competing, and a contract spelling out the schedule and itinerary for the show car. That's a separate deal.

The guy who was at one time the Jeff Gordon show car driver was a friend of mine. He had a dually and trailer and ran all over the country a couple of weeks in front of the NASCAR circuit. He would go to a Chevrolet Dealership, or a DuPont Distribution center unload and hang out for the day talking to fans/customers. He was knowledgeable about the car, how the team was running, even the sponsor products to a point. So when a fan asked a question, he could answer it. He told me once that in three years on the job the only race he ever attended was the last race of the season, because very other week, he was in the next town when the race was running. His only real connection with the race team was when he needed a "new" show car which was always a retired race car. He would go to the campus in Charlotte and swap out cars. He operated completely independent of the race team.

The there's the personal services aspect. Another completely separate deal from the race contract.

Alan

I know for Topeka race there were race cars placed all over Kansa City week before race people use to look forward too it. Not much done anymore.

 

[Nunz]

Alan thanks for the great info. I know enough to be dangerous about this stuff, but I've learned a lot, including there are several Maters who are willing to sponsor a race car!

 

[megadeth]

Bob,

If a team has a show car program that is either in the main contract, or (more likely) the team has more than one contract. This goes back to the activation part. If Pelligrini Auto Parts wants to sponsor my team and as part of the deal wants me to display at his local distribution points two weeks before the event comes to town. We both know that this can't be done with the race car which will be competing in Topeka while the show car is working in Denver. So there is a contract for the race team to be at the track competing, and a contract spelling out the schedule and itinerary for the show car. That's a separate deal.

The guy who was at one time the Jeff Gordon show car driver was a friend of mine. He had a dually and trailer and ran all over the country a couple of weeks in front of the NASCAR circuit. He would go to a Chevrolet Dealership, or a DuPont Distribution center unload and hang out for the day talking to fans/customers. He was knowledgeable about the car, how the team was running, even the sponsor products to a point. So when a fan asked a question, he could answer it. He told me once that in three years on the job the only race he ever attended was the last race of the season, because very other week, he was in the next town when the race was running. His only real connection with the race team was when he needed a "new" show car which was always a retired race car. He would go to the campus in Charlotte and swap out cars. He operated completely independent of the race team.

The there's the personal services aspect. Another completely separate deal from the race contract.

Alan

Thanks Alan that was a interesting read.

 

[none]

There are always "Special Circumstances" that come up now and then, where the team owner will do something that's not laid out in the contract.

For instance, when we come into Indy for the US Nationals there has sometimes been a DSR or JFR show car in the airport. I have often wondered if that is part of the contract? Or if it's a case of:
A: (always the first consideration) It's good exposure for the sponsor.
B: It's good exposure for the team.
C: It's good exposure for the event.
D: It's good exposure for NHRA
and E: It's hometown, so it's easy and inexpensive to do. So Don and John just do it because it's all upside and no down?

I don't know the answer to that question, but I do know that no sponsor that I have ever heard of has complained for the team doing something above and beyond to get more exposure for the sponsor.

Alan

 

[z28]

Alan - I got some puzzled looks from the Quick Lane guys today when I requested Reinhart Oil for my oil change.
Just tryin' to help.

should have gone to Jim O's

 

[camaro]

i get, that on a B to B sponsorship deal, 'on track' performance is nominally important, as the racer has already fulfilled his part of the deal by providing some kinda goods an service, to the partner. I was referring to a 'straight up' sponsorship, where all the racer provides, for the sponsor is exposure. I pointed this out, in my previous post, but it was completely ignored and i was subsequently lectured on the aspects of B to B deals. I remember a quote that Warren Johnson made years ago about how he 'doesn't just want to win, but he needs to win' . So i'm still trying to wrap my head around the comment that 'on track' performance ( ie TV & Live exposure) is equally or less important as appearances, hospitality invites etc.

 

[65 Goatboy]

i get, that on a B to B sponsorship deal, 'on track' performance is nominally important, as the racer has already fulfilled his part of the deal by providing some kinda goods an service, to the partner. I was referring to a 'straight up' sponsorship, where all the racer provides, for the sponsor is exposure. I pointed this out, in my previous post, but it was completely ignored and i was subsequently lectured on the aspects of B to B deals. I remember a quote that Warren Johnson made years ago about how he 'doesn't just want to win, but he needs to win' . So i'm still trying to wrap my head around the comment that 'on track' performance ( ie TV & Live exposure) is equally or less important as appearances, hospitality invites etc.

Don't be offended, very complicated subject!

 

[none]

James,

I thought we were discussing?

Very rare these days is a deal where someone just writes a check and then watches for his car on TV. There is the case where someone will throw a few bucks to a smaller team to help keep them on the road, and there are those who will pick a team that is doing well and want to add their name to the car hoping that the car will continue to run well and he will be seen. But nonexistent is a deal were a sponsor pays the full freight for the season under those circumstances. There is always more to it.

Warren made his living racing so what he won contributed greatly to his income. There are some pro teams where the winnings are all or very nearly all paid out to the crew in bonuses. But if your contract has a bonus clause for winning then the owner will benefit from that. I know for a fact of a team where that was the case.

Back in the day much sponsorship was based on a shotgun approach, ie. If we blast our name everywhere people will have to see it. Then companies got the ability to track what was working and what wasn't. Being seen on TV was a bigger deal because that's all that was.

The "Super Teams" of days gone by started shrinking when the companies began seeing that one or two were garnering 80% of the exposure. Then those guys wanted a bigger slice of the pie and the others were no longer part of the team.

If you are the team owner you can't guarantee that you will be on TV, you may not even qualify and you certainly can't guarantee that you will win. So you should be looking to find ways that you can guarantee results.

Alan

 

[camaro]

It's actually disappointing to know that the Majority of deals are currently B To B Deals. I'd like to think that when i see a big company name on the side of a car, that company deemed drag racing as a viable platform to help promote their product, but in essence they'r doing it because the particular car owner, in some way agrees to patronize said company !

 

[none]

That's not always the case. Dick Levi does it as a venue to entertain clients, I doubt that many in the stands would have reason to hire his services, but he still sees value in it.

Snap On sees NHRA as a way to connect with customers, and also as a way to incentivise dealers. Same with MATCO and MAC.

I think that the bottom line today is this. If I'm spending 3 million dollars to sponsor a car, what else can I do to make it pay off for me? Can I tie it into my other advertising? Can I use it within the company to reward my staff or clients? How can I maximize my investment?

And if someone is giving me 3 million dollars to go racing, what else can I do for them? Other than just being on the track how can I help them get exposure? And how can I help them drive sales?

Wouldn't you do the same?

Alan