Economics 101 & NHRA
 

For those who like myslef remember what I learned in college economics classes, it is easy to understand that when you double the price, you will not raise double the revenues. In fact, you may get less than what you recieved under the former price.

The following is a copy of my most recent letter to NHRA.

NO PROBLEM RACEWAY PARK, LLC.
6470 Hwy. 996
Belle Rose, LA 70341

(985) 369-3692 track www.noproblemraceway.com (985) 369-1157 fax


May 7, 2009

Mr. Graham Light
National Hot Rod Association
2035 Financial Way
Glendora, CA 91741

Dear Graham,

If you check your records, I am sure that you will find that No Problem Raceway submitted over 80 new license applications in 2008. Since the membership/license/permanent number fee increases adopted last month by NHRA, we have only completed two.

Last night during our Wednesday Test-N-Tune session, a racer who currently holds licenses in Stock, Super Stock, Advanced E-T, Super Gas, and Top Sportsman categories approached me to discuss his upcoming renewal. Prior to the increase in fees, he paid $90.00 for his two-year multiple licenses. However, he informed me that due to the higher fees, he intends to renew his competition license for only one category for $100.00, and drop the other four.

For this particular racer, the effect of NHRA doubling the fees will result with a net gain in revenue to NHRA of only $10.00. He intends to renew all of his IHRA competition licenses, and will enter fewer NHRA events.

The same scenario is happening with many of the racers who support No Problem Raceway. The action by NHRA to increase fees is driving many of my customers away to compete at State Capitol Raceway in nearby Baton Rouge. Other facilities may not have competition from IHRA tracks, but we have been impacted in these tough economic times by customers seeking to save a few hundred dollars wherever they can.

Our customer base support is from the many “bracket racers” that live within a 60-mile radius. We offer a better racing facility, but the cost to compete as an NHRA racer is more expensive than our nearby IHRA competition in Baton Rouge.

I am hereby requesting that NHRA strongly reconsider the net effect of doubling participant license and chassis certification fees. Since last month, I have observed a dramatic decrease in license applications and new members for NHRA at our facility. Surely, there must be some alternative funding sources other than placing the burden on member tracks and their bracket racing customers.

Awaiting your reply, I remain,

Sincerely,



Pat Joffrion
General Managing Partner

Re: Economics 101 & NHRA
 

Good Job Pat!

Re: Economics 101 & NHRA
 

Great letter Pat!

I am anxiously waiting for you to post what kind of reply you get from NHRA.

Thank you for taking a stand for the independent track operators (idependent business owners) and racers.




Hey Dan Moore, you're #1. :D

Re: Economics 101 & NHRA
 

As usual, Pat you have hit it on the head! Great letter. I will be interested to see if and when he will get back to you. Jim

Re: Economics 101 & NHRA
 

Pat,

I wish there were more track owners who show the passion for the racers like you do. I've been in this sport long enough to remember when State Capital Raceway was also an NHRA track (I'm sure you recall it being the home of the former "NHRA Cajun Nationals")! I can't forget it, because I have pictured in my mind a Super Stock final (from the '80's) that had "Steve Bagwell", and one of his famous SS/BA (Belvedere/Savoy) cars in it...the picture of it was taken (from nearly behind the car) at about the 4-5 o'clock (if not the 7-8 o'clock), angle...thus one of the coolest shots of that car I've ever seen...

I surely wish you well with your reply from Graham, and I hope he gets your concerns and reconsiders the negative effect his decision has made on not just us racers, but you track owners as well...Hey "Sporty Bandimere" I hope you and "John Bandimere Jr.", will enter in to this as well, because this has to be having a bad effect on your track as well??? How about the rest of you track owners...after all, there's strength in numbers!!!

Re: Economics 101 & NHRA
 

There is a rule in Economics that is called the "law of diminishing returns" in essence you increase something (fees) and leave everything else the same your returns will be less. This is a classic example.

Re: Economics 101 & NHRA
 

I'm not one to create words of wisdom, but the more I think about it, the following seems to make pretty darn good sense when actions of others effect your ability to keep customers...

"I'm not worried about you shooting yourself in the foot... I'm worried that your foot may be on top of my head when you pull the trigger!"

Re: Economics 101 & NHRA
 

Great Quote I might have to use that one some day.

Re: Economics 101 & NHRA
 

Pat for President - wish I lived closer and support your track on a regular basis.

Re: Economics 101 & NHRA
 

I was looking at the IHRA website, am I reading this correctly? $70 for membership, lisence & number for one class, and rulebook for one year?

Re: Economics 101 & NHRA
 

Yes thats right

Re: Economics 101 & NHRA
 

Now thats a deal right there!

Re: Economics 101 & NHRA
 

Tim,

I second both remarks, because I sure would be out there with you!!!

Pat, you're the man!!!

Re: Economics 101 & NHRA
 

Pat, the next enhancement could easily be more fees to track owners for the privilege of being NHRA members. If that happens I could easily see track owners getting together to form their own organization. If track owners took the lead I think sportsman racers would follow like the merry band following the pied piper. In fact a partnership between track owners and sportsman racers could be awesome. Have your own insurance program, your own points series, your own bracket series and take the sportsman sponsors with you. I can't imagine Jeg's, Summit, or Lucas continuing to support NHRA if 80% of the sportsman were gone. I truly don't think bracket racers care what the organizing body is as long as they have a good place to race with decent payouts.

Re: Economics 101 & NHRA
 

Prescott Raceway in Arkansas is a non-sanctioned track, however, they have an outstanding race program with large attendance. [brackets plus other programs] It is a very good faculty, well run, and in good condition.

Re: Economics 101 & NHRA
 

Excellent letter!

Has anyone else sent letters to Forrest Lucas? I was hoping enough letters politely asking him to get involved (as the major sponsor of NHRA sportsman racing) would yield a positive result.

Regards,

Re: Economics 101 & NHRA
 

Best post yet. I will add one more thing to the suggestion. I real good website to coordinate everything.

Re: Economics 101 & NHRA
 

Greg

I could not agree more with you, your post was right on. I cannot for the life of me understand the thought process from the people in charge in Glendora. When you hear Pat, its like a breath of fresh air, no BS, just good old fashioned reasoning. Like most racers I don't want to see our "hobby" come to an end, but I don't see the NHRA making it much longer with the attitude and thought process that they seem to relish. It would be great if racers/track owners/sportsman sponsors could figure out a way that would benefit us all. I believe with people like Pat involved from the track owners position and like minded racers as yourself and most other's, that it is indeed an attainable goal. As you stated I believe the sportsman sponsors would climb on board willingly.

R J Sledge

Re: Economics 101 & NHRA
 

This situation can be turned around too, just like this one....

http://industry.bnet.com/advertising...bra-surcharge/

This is no joke! See how they accomplished it.

Re: Economics 101 & NHRA
 

You folks needed to be at a very large (well they used to be much, much larger 5 years and 3 CEO's ago) worldwide corporations annual meeting last week. When asked direct questions about specific items the Board did not answer or even respond to the questions. Spend your money now, in 5 years it might be worthless.

Re: Economics 101 & NHRA
 

Pat,

As a Professor of Economics, I can verify you have a sound understanding of the Law of Demand and its practical application. As for any others involved in NHRA, I can only say there are a few seats still open in my fall class-only problem is that we reject over 60 percent of the students who apply here, so I'm not sure they would get admitted!