Why Not Us? (2 Viewers)

[ol21stud]

well we can agree to disagree about how much time at an event is too much, too little, or just right. IMO it seems like the time a 'fan' wants to spend at an entertainment
event, whether sports or other, has maybe decreased over the years? but youth still flock to music festivals that last all day or multiple days, just as an example of something over the 3-4 hr. timeframe.
the overriding factor i still see is that money spent to enter an event should not be the end of spending. ...... i wonder if nhra has studied buying habits at nat. events?
once a fan enters, how much on average can be expected to be spent on food, beverage, and souvenirs?
to use round numbers, if a national event attracts 50k people over a 3 day event at average GA ticket price of $50, that is $2.5 million.
how do you get each fan to keep spending once in the event? do the math. spend another $50, it's another easy $2.5m gross. spend more. make more.
you can't spend sitting on an aluminum bleacher.

While I agree with most of what you are saying, I feel the need is for significant increases in revenue sources all across the board. With concession sales and souvenir sales already in existence, you are asking the current spectators to possibly double what they are already spending. I agree, that would be great. But I'm not planning on doing it myself, as how many t-shirts or burgers do I want or need?

If NHRA or any promoter were to increase their crowd by just 20%, the overall gain would be huge as they are already paying their nut (or they are already broke) But just a 20% increase in ticket buyers also means a 20% increase in souvenir and concession sales. How to do that is the real solution to the promoter being able to pay more $$$ in prize money.

This weeks race in Bradenton pays the Pro Mod winner $50k. How can the promoter increase it to $100k? It would take 1500 additional people paying his $35. ticket price to just pay the winner of one class that $50k! (And that's gross and not covering taxes on those tickets or any additional needed costs like more staff, more toilets, more parking area, etc.)

You are right in pushing additional profit centers. If each $25. t-shirt cost him just $5. (after taxes) to get in the buyers hands, the promoter makes $20. profit each. To pay that additional $50k to Stevie Fast or Melanie, (my prediction) the promoter would need to get an additional 2500 people to buy an additional t-shirt over his current sales.

But were the promoter to do whatever it takes to get an additional1500 ticket buyers, he also gets an additional 1500 potential t-shirt buyers and concession food and drink buyers. If only 2 out of 3 of that 1500 bought a t-shirt, burger and drink, he's doubled the additional $50k he needs to pay the Pro Mod winner. He would be happy to do that as he also made an additional $50k himself and increased the possibility of promoting another 50 years of profitable "Snowbird Nationals".

 

[nedannouncer]

The pro mods, all 52 that have entered paid 500 bucks a piece. Even the guys that got in way late (today) and had one shot to get in.

That’s half the payout. With sponsorship from M&M, along with Carmack Engineering, the vast majority of the purse is paid for. Then start adding in the dozens of cars per day testing at a couple hundred bucks a day since Monday and we’re at the 70k to cover the whole nut before a dollar of ticket sales gets taken.

Every NHRA national event is a million dollar payout race and way past that when all the round money is tallied.

And speaking to the original post, there are dozens of 20k to win bracket races around the country every week. And larger 50-100k races are not in short supply either.

 

[ol21stud]

The "Why Not Us?" post asked why can't drag racing pay like the dirt track races do. Mr. Lohnes stated the current status of drag racing, and it truly isn't that bad for those of us who enjoy the current show and for those racers who are happy to "pay to play".

The fact is that currently, drag races require serious back gate money to pay a large hunk of the purse, plus typically require a "sugar daddy" sponsor('s) to put it over the top. The Snowbirds will pay the Pro Mods their own entry money back plus the two sponsors sponsorship money. We could look at it like it's not the people on their splinter boards that are paying the purse. It’s the spectators that effectively pay track expenses and any profits.

For many interested in drag racing, that's fine. There are a tremendous number of bracket racers in this country and they race to empty bleachers every week without a problem. They are racing for their own money with hopefully some track sponsor money thrown in. Those track sponsors "feel" they are getting positive ROI from their racing investment... or they are wealthy enough that they are "donating to a good cause". Well, at least a cause they like.

But the "Why Not Us?" question was asking why can't drag racing be so popular (like dirt track racing.) that it produces enough $$$ that its "performers" don't have to "pay to play"?

Most of the comments since that first post have been our opinions as to what would make drag racing pull in paying spectators like the Pro stick and ball leagues and dirt track racing. It's why I keep focusing on "the show" put in front of the paying fans. IF the show is of high value to people that pay to watch it, they will come back and pay again and again plus bring their friends. Personally, I can’t stand opera. If I got a bunch of free tickets, I wouldn’t invite my friends… unless I didn’t want them to be my friends anymore.

Another income stream that could be increased and make NHRA and track owners/promoters enough additional money that they “want” to pay racers more, is additional revenue from either bigger corporate sponsors or many more smaller sponsors.

While it was a great thing that Camping World jumped on board NHRA’s show, it’s a worse thing that Coke dumped NHRA in the first place. Should Camping World ever feel that NHRA isn’t producing enough ROI and pull the plug like Coke did, NHRA should worry that nobody else would take the ROI gamble to replace Camping World. That’s not a comfortable position for NHRA to be in. If it were me, I would be working very hard to make fans so happy they talk about “the show” they just saw for weeks and bring their friends to the next one. Then additional corporate sponsors like Coke and Camping World would come find NHRA.

 

[Randy]

Just to add to the conversation, I spoke to one of the concession stand owners at the Fairplex at the Finals. I don't know how true her statement was, but she said they are required to split the price of all their sales with the Fairplex, not NHRA. So a $12 breakfast burrito nets them $6 and the Fairplex $6 per her statement. These are the same vendors who work the fair, swap meets and any other event held on the fairgrounds.

Maybe someone else can confirm or deny what she told me?

 

[mgty3whlr]

50% sounds like a lot considering that the stand owner has to purchase the food and beverage. Unless the Fairplex chips in for the inventory which I think is highly unlikely.

 

[ol21stud]

Post #41... I predicted Stevie Fast or Melanie to win the Snowbirds. The lady wins again!
And with Brian Lohnes and Al T. on the mic's. There's another winning combination.

 

[Cliff]

Just to add to the conversation, I spoke to one of the concession stand owners at the Fairplex at the Finals. I don't know how true her statement was, but she said they are required to split the price of all their sales with the Fairplex, not NHRA. So a $12 breakfast burrito nets them $6 and the Fairplex $6 per her statement. These are the same vendors who work the fair, swap meets and any other event held on the fairgrounds.

Maybe someone else can confirm or deny what she told me?

That sounds about right. When I used to go to Wild Horse , got to know one lady w/ food truck. They had to pay a fee to be there, so probably part of the profits.

 

[Nappy]

From what I remember, food vendors paid a flat fee per event to NHRA. This was awhile ago, so don't know for sure if it's still currently this way.

 

[M Jones]

From what I remember, food vendors paid a flat fee per event to NHRA. This was awhile ago, so don't know for sure if it's still currently this way.

Venders pay % of sales it can vary a little from event to event, have to cover there cost for supplies, and labor, in vegas food venders pay thru leavy food and catering

 

[Nappy]

Venders pay % of sales it can vary a little from event to event, have to cover there cost for supplies, and labor, in vegas food venders pay thru leavy food and catering

Thanks Mark. Like I said it was awhile ago, around late 90's or 2000.

 

[Nick Name]

King of grudge motorcycle event in a couple of weeks in Orlando will pay $90,000.00 to the winner.

 

[Randy]

That sounds about right. When I used to go to Wild Horse , got to know one lady w/ food truck. They had to pay a fee to be there, so probably part of the profits.

Might be why a breakfast burrito literally consisting of one 10" round flour tortilla, with one well done egg and a strip of bacon inside is $12.

 

[jimbo]

Years ago I knew a vendor I trust told me that at Norwalk they had to buy their pop, water, paper supplies from the track - at a mark-up I'm sure. Never confirmed that, but possible.

I used to book concessioners into our Parish Carnivals each year, and believe you me it was a cut throat business. It started as usually 1/3 all the way around. Profit for the concessioner, cost and 1/3 for us. That was a lot of accounting with us having to collect tickets (no cash from buyers, we sold the tickets, the vendors accepted them) and split up the take. after a number of years, we had a baseline and set a flat rate for each vendor. All was fine as long as you had lot's of people buying lot's of food. When number of people dropped that's when the problems started.

 

[M Jones]

Years ago I knew a vendor I trust told me that at Norwalk they had to buy their pop, water, paper supplies from the track - at a mark-up I'm sure. Never confirmed that, but possible.

I used to book concessioners into our Parish Carnivals each year, and believe you me it was a cut throat business. It started as usually 1/3 all the way around. Profit for the concessioner, cost and 1/3 for us. That was a lot of accounting with us having to collect tickets (no cash from buyers, we sold the tickets, the vendors accepted them) and split up the take. after a number of years, we had a baseline and set a flat rate for each vendor. All was fine as long as you had lot's of people buying lot's of food. When number of people dropped that's when the problems started.

In vegas the venders have to get water and soda from levy ( track main vender ) pay for what ever they don’t return

 

[jimbo]

In vegas the venders have to get water and soda from levy ( track main vender ) pay for what ever they don’t return

That's what I'm talking about!

 

[mick]

can anyone comment on camping world and their status/opinion on their involvement with nhra?

 

[ocdart]

Just to add to the conversation, I spoke to one of the concession stand owners at the Fairplex at the Finals. I don't know how true her statement was, but she said they are required to split the price of all their sales with the Fairplex, not NHRA. So a $12 breakfast burrito nets them $6 and the Fairplex $6 per her statement. These are the same vendors who work the fair, swap meets and any other event held on the fairgrounds.

Maybe someone else can confirm or deny what she told me?

I know a now-retired food concessionaire whose son now runs the business. He told me the Fairplex dictates what the concessionaire item pricing will be. The "$12 breakfast burrito" selling price is not set by the food vendor, it's set by the Fairplex.