Economy vs. Economics
This is not an attempt to show any disrespect to NHRA or any of its people in the sunny hills of Pomona, California. It is just a statement of facts as to what has occurred at our facility in the wet swamps of Louisiana.
It has been 7 months since NHRA raised their sportsman license fees and chassis inspection fees. I don't know how it affected other tracks, but in those 7 months, we signed-off on only 17 new license applications... down from 56 new license/members/drivers during the 7 months before the increase. That is a decrease of almost 70%. Since the price increase, we have only seen 90 chassis inspections. Prior to the increase, during the same number of certification dates, we did 163. Down 45%! Call it a bad economy? I don't believe that to be the entire case. It's not the economy... it's economics! I was taught in college economics classes that Supply + Demand = Price, and with supply being constant, if you want to increase demand, you lower your price. If you raise your price, you will see a decrease in demand. This is basic economics 101. We have not raised our spectator fees since we opened our gates in 2001. My 84-year old dad told me recently that I needed to go up. His logic was that a dollar is only worth ½ of what it was worth 10 years ago. My explanation to his is that there are 5 times as many people that can afford to spend $10, as there are those that can afford to spend $20. (see above paragraph) Racetracks survive from local customers. They cannot survive with full grandstands once or twice a year. With the increased fees, fewer of our "bracket" racers have stepped up to racing divisional and national events. Just look at the racer entries from 2009. Most national and divisional events were down dramatically. We were blessed to have over 500 racers attend our Cajun SportsNationals, and I would like to thank each and every racer, crewmember, and fan that helped make our event so successful. The only good thing about the increased fees is that it has kept more racers spending their money bracket racing, rather than pony up the extra bucks to "follow the circuit". And as far as chassis certifications, racers have just slowed their cars down to 10-flat. That correlates to saving almost $450.00 by not having to join NHRA, not paying for a physical, not paying for a competition number, and not having to fork out $150 extra for a chassis certification sticker. We now have so many cars running 10-0's that we are seriously looking into having a separate heads-up 10-flat category during our bracket races. Those that can afford to pay the price can still run fast. Those who cannot afford the extra costs are having just as much fun running 10-0, rather than 9-50 and down $4-50 out of their wallet. Perhaps NHRA may "re-think" their decision to increase fees. They need new members to survive, and I can tell you that at our track, new NHRA memberships have dropped by 69.6429% from the prior 7 months! That is not a formula for success, no matter if you base your formula on the economy or base your formula on the laws of economics. No Problem Raceway has had another very successful year, despite the weather. We have recently sold our road racing track to a group of road racers from New Orleans. We are currently enhancing our track revenues from non-drag-racing events. Without these concerts and other activities, we would be suffering like most other facilities. Drag racing is not paying the bills, and customers and fans are watching real hard how they are spending their dollars. We need NHRA to not only survive, but to thrive. Without NHRA, more racers would have died in crashes that are now survivable. Think about that next time one of your buddies goes over in a crash. Just this past Saturday, one of our local guys went off the big end at over 200 mph (stuck throttle), drove through the 300-foot gravel pit with dual parachutes deployed. His car traveled another 300-feet before flipping several times, and came to a final stop more than 3 football fields past the end of our 4,000-foot long track. After cutting the roll cage to safely remove the driver, I removed the chassis certification sticker, as required by the rule book. The sticker was dated 09/2009. He was one of the 90 in the past 7 months, and I am sure glad that he added those extra bars. The driver sustained a broken arm, and doctors found a blocked artery near his heart. Thankfully he survived the crash, and the doctors prevented a possible heart attack. I would like to hear from other track owners. Please feel free to forward this post to your local track owner. I can be reached at patjoffrion@hotmail.com, or on my cell at 985-665-7145 to discuss what owners can do to insure the survival of drag racing tracks. I'll be glad to offer any advice that might help to keep your local drag strip going. No need to contact Memphis... It's already too late to help those area racers and fans. With them closing, NHRA will see a decrease of 100%. Anyone ever heard of someone pricing themselves out of the market? My old Grandpa once told me, "Son, 50% of something is always better than 100% of nothing". Every time NHRA loses a member or worse yet, loses a member track, they are stuck with the latter… 100% of nothing. Pat Joffrion SS/KA 4308 No Problem Raceway Park 6470 Hwy 996 Belle Rose, LA 70341 (985) 369-3692 - office (985) 369-1157 - fax (985) 665-7145 |
Re: Economy vs. Economics
Pat, This is very well stated, I HAD been a member of NHRA since 1959 but am not now. As a former track operator Greenville Dragway, very small but NHRA sanctioned and proud of it and a racer for 50 years I say you are on the right trail but I think you have always been on as a Track Owner, as I watched you and your racers at the Bracket Finals and everbody was HAPPY and that is good. Thanks J.Smith 4621 racing
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The voice of logic and reasonable thinking. Now if the people that need to hear it most would only listen.
Thank you Mr. Joffrion. Hey Dan Moore, you're #1. :D RIP Mark Graham |
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In the new advance economics we see that big companies increase the prices, pad their pockets, and then when the company shuts down, no skin off their ***, they have made their money. I'm sure the guys that run NHRA could care less if drag racing dies as long as their personal finances increase.
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You folks are a bit slow.... when it comes to catching on to NHRA's game.... NHRA doesnt want us.... There are no Average Joes racing in Nascar... soon if you are not a multi millonaire you will not race NHRA. NHRA wants to be like Nascar.... Mark my words...I hate to say it but soon I can say... "I Told You So"
Wake up & smell the coffee!! They have not done anything to increase membership in the lower ranks.... Hell they tried to sell out the company to a group of insiders that were not gonna take the stockers... Did you folks fail to catch on??? None are so blind as those that refuse to see...Im not a "The world is gonna end sign toter" but Im not blind to the you are not really welcome but we will tolerate you untill we can dump you program that NHRA currently runs. |
Re: Economy vs. Economics
Great post, Pat. And so many of these guys are always bashing the bean counters of the world. ;-)
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Pat well said. Hope someone with some pull will read your post.
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I say we start a petition to elect Pat Joffrion for chairman of the board at NHRA! I'll be the first to sign it!
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Pat,
I agree with your economics tutorial. But the track owners can or should adopt and enforce a uniform set of safety standards for our race cars. In fact, that being said, why are tracks that do not host national events still paying nhra money? nhra appears to be hurting your business. I know they are the "brand" name, however people all over the world are finding out that brand names are not what they are cracked up to be. Times have changed but nhra has not. All the tracks that do not host national events could set up a federation and network their computers systems to help push drag racing into the 21st century. 95% of your customers are already in the 21st century. Why drag along a belligerent bunch of money grubbers? |
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Re: Economy vs. Economics
Pat, you couldn't have stated it any better. As far as sportsman racer, we all have an income range that allows us to participate in NHRA events. Some have higher incomes, some lower. When prices are raised, there will be racers at the bottom of that income range who decides it is no longer economically worth their time, money, and effort to participate in NHRA events. They will go elsewhere to race, reduce their racing schedules, or quit all together. When the prices are lower, you not only keep that group of people racing, you attract new racers because it is now economically viable for them to join and race in the NHRA.
The NHRA has to start from within. They need to cut internal operating costs which includes wages. In turn they can lower all fees associated with racing which will attract more racers. |
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Perhaps copies of Mr. Joffroin's analysis should be sent to the NHRA leadership so that they can understand how to actually run a business correctly!
JimR |
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WHAT EVER PAT SAID, X-------100"s, But then again they have never listened , why would they start now ?
What Pat and the others said, I agree with and hope someone in GLENDORA gets off thier butts and does something soon ! I just hope I live long enough to see it , and still be Racing.......Later John |
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I had let my NHRA membership go for several years, and just joined again last summer. I signed up for two years at the time. Then, they jacked the fees, and because of this, when my membership is up, it will lapse once again.
Ironically, when trying to listen to the Audiocast this weekend, the login told me that my membership was expired, even though it's good til next August. Wow... "how to make friends and influence people"... We need more Pat Joffrions. |
Re: Economy vs. Economics
pat you cost me paying my membership at your place...
if you didnt have the best damn race ever (killer sportsnationals) i would not have paid my membership ! anyway i seriously think its time to form a new organization... and i will be the first to send my $150 to the new group... i personally think pat would be the best person to be president / ceo / czar whatever and i think we could muster enough support from fed up racers / track owners / techmen to pull it off. you cant fix stupid and that is what we are trying to do with nhra. jack mccarthy and ill be there again for your race pat... just tell me when ! hell its only 800-900 miles ! |
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Chairman heck, I'll vote Pat for President!! Sack of Mud Bugs in every pot. Thanks Pat for looking out for our sport & drivers.
Jeff Colvert SS/G 4456 |
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If NHRA cared about the little guys it would be different, but they dont.
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Hey,what happened to Mark's post??????????????????????????
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In these harsh economic times even the big bracket races that take place down here in Florida are taking a beating. When I first moved down here (1992), the 5 Day at Moroso had about 370 to 390 cars if I recall correctly, this year there about 130 cars. Some of the lost car count has to do with the track operation but most of it is from the economy. Immoc Winter Warm up had something like 70 to 80 cars and Gmp had somewhere around 120 cars. This should be sending a message to NHRA and IHRA that they can't keep operating as they did and that they should take into consideration that not everyone has the deep pockets that used to prevail. I'm repeating myself in past posts, that I looked at the lousey $10 (from $150 to $160) increase in the entry fee for a D2 race, which made me make a decision that I will not attend a D2 race until they start lower the entry fees.
The entry fee for the D2 races should also support a much more lucritive purse for the racers also. Pay $160 to win a $1000, (can't include decals) is crazy when I can pay $40 to win $650 at my local track. NHRA, WAKE UP!!! Casey Miles 248H |
Re: Economy vs. Economics
Pat, running a 10.0 index is a great idea. the 12.0 or 11.5, 10.0, and 8.50 is really popular here in the north east. packs of door cars, muscle cars, street cars.. on DOT tires. big classes now at the jersey area tracks. lots of fun, no delay boxes. heads up to the finish. wish I could class race w my car, but I can index w my car.
puts fans in the seats. they understand first to the finish. |
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This is what the NMCA has been doing for years. Index racing, break out and you're gone, no electronics, just stab and steer. JimR |
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Sounds like the AHRA is going to be the best way to go. From what I have been reading, they are supposed to be doing things the way the racers and tracks want things done. Completley opposite of the NHRA. They are looking out for the "grass roots racers", not the racers who have multi millions to spend. Pat, you have always been ahead of the game, maybe its time to drop NHRA and switch to AHRA? I bet Paul has some memories of the old AHRA.
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Hey the Ross Family put together a nice little combo deal here in Ohio. They have a good payout, they ask the racers what THEY want, they run the races efficiently and fairly, no drama and arguments just race. If I could go to 8-10 of those a year I'm sure I'd have alot more fun racing, don't get me wrong I enjoy seeing the people we've met and going to some different tracks is OK . But for their entry fee and what they pay out, plus it's all in 1 day start to finish what the heck!The fact is that the HRA's either don't want us or need us you chose, it's either too expensive to race or too far to travel. We all may have to go to a more local deal to make the HRA's sit up and take notice. Joe
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