New JACO foam sedan tires
11-15-2007, 04:49 PM
#316
its all about marketing a product and bringing more business to the hobby shop.
11-15-2007, 04:58 PM
#317
Is the $9.99 price from Kwik the issue here? I some how doubt they are making any money just selling rims at that price. It has been said before the price is to draw customers in not only to buy the rims but more importantly other items. I don't think they were given a price break in order to sell them at that price. If you don't like buying from your supplier can't you buy from a distributor? What do I know tho
Actualy there are many online shops running a $9.99 special on the prism line. To be honest I never heard of Kwik untill now. I've told the racers who brought this up I can't match that pricing. So I told them to go ahead and buy them on line, if that is what they have to do, many have. I'll drop it my point has been made, and I'm not alone in the way I feel about how this has been done.
It may not happen untill our next point series, but I'll start looking into the possibility of running a spec tire for our carpet classes.
11-15-2007, 09:19 PM
#320
Tech Regular
iTrader: (4)
Common misconception, race fees don't keep a track open. And if the tracks can't sell the simple consumables competitively, we cannot pay the bills. There are enough quality tire manufactors out there we can choose from, that don't deal unfairly with us local shops.
A good comparison would be if GM decided to sell cars to a few specific dealerships in the Country at a different rate. What do you think would happen.
A good comparison would be if GM decided to sell cars to a few specific dealerships in the Country at a different rate. What do you think would happen.
Do you really think that every dealer pays the same price for the same vehicle? Pricing rewards sales and if you sell 1000 cars for a company like GM and the guy next door sells 5 and pays the same price wouldn't you be upset about that to
I would be pretty pissed that the guy next door to me only sells 5 and is rewarded by getting the same pricing on the same car I sold a 1000 of.I would expect like any business if you get a large bulk order of a particular product you might get a better price because of amount of product being purchased. Its called buying power. I run my own construction business and repeat customers always get a little better pricing than one time customers, that is just how the competitive business world is sometimes.
If you were to sell tires at the same price as the on-line shops(or close to it) you would probably sell more tires in the long run making just as much or more $ as before, thus brining more racers to the track to enjoy their cheap awesome tires from Jaco. They come they spend money on race fees they buy lots of tires and everyone wins
Back to the regularly scheduled program that is the jaco tire.
11-16-2007, 09:29 AM
#323
Our track doesn't survie on hobby shop sales so I can't comment on that. Its run/supported by the members.
I would expect like any business if you get a large bulk order of a particular product you might get a better price because of amount of product being purchased. Its called buying power.
If you were to sell tires at the same price as the on-line shops(or close to it) you would probably sell more tires in the long run making just as much or more $ as before, thus brining more racers to the track to enjoy their cheap awesome tires from Jaco. They come they spend money on race fees they buy lots of tires and everyone wins
Back to the regularly scheduled program that is the jaco tire.
I would expect like any business if you get a large bulk order of a particular product you might get a better price because of amount of product being purchased. Its called buying power.
If you were to sell tires at the same price as the on-line shops(or close to it) you would probably sell more tires in the long run making just as much or more $ as before, thus brining more racers to the track to enjoy their cheap awesome tires from Jaco. They come they spend money on race fees they buy lots of tires and everyone wins
Back to the regularly scheduled program that is the jaco tire.
Your 1st comment, "the members support the track." Question, is this a permanent facility or a temp.?
If you could buy in bulk, your theory is correct, however when you are trying to make rent and overhead, having the extra money to buy in bulk is non existent. I too own a business besides the track/hobby shop. Yes, repeat customer do get a better price from me, in my 1st business because of margins. This however can not be done on the margins that a track/ hobby shop makes. In a hobby shop, the margin is at best about 30%.
As a contractor such as yourself and myself, we can off set the discounts in the labor we charge for the work we do.
Others have said if you run a track right you should be able to pay the rent and overhead on race fee's.
Simple math would show that's in no way possible unless you were to have at the current rates( $15.00), 50 racers a race night at least 2 nights a week.
The other option is to have the current average of racers (around 20 to 25) and charge $40.00 per racer. Since racers will not pay those rates to race we need to sell around $ 30,000. per month at the 30% margin along with the consistent race night in order to break even.
As I have told the racers in our area. Breaking even is all I ask. If so the place stays. If not, it will go right along with the other tracks in this area.
When I say break even, I mean I take nothing for the 7 days a week I work and the 49 hours a week min. that I work. This in addition to the other full time job I have and the fact that my family life suffers. Enough of the sob story, but do you see were myself and many other track owners would have a problem with on-line, no overhead, no track for the racers to race on, would have a problem with it.
A sale from time to time is great and gives guy's a chance to make a great score, however as a consistent pricing is just wrong. It will pretty hard to sell product when there is no place to use the product. We all need to work together and grow the hobby not kill it.
Thanks for your ear
11-16-2007, 09:34 AM
#324
11-16-2007, 11:05 AM
#325
Joe,
Your 1st comment, "the members support the track." Question, is this a permanent facility or a temp.?
If you could buy in bulk, your theory is correct, however when you are trying to make rent and overhead, having the extra money to buy in bulk is non existent. I too own a business besides the track/hobby shop. Yes, repeat customer do get a better price from me, in my 1st business because of margins. This however can not be done on the margins that a track/ hobby shop makes. In a hobby shop, the margin is at best about 30%.
As a contractor such as yourself and myself, we can off set the discounts in the labor we charge for the work we do.
Others have said if you run a track right you should be able to pay the rent and overhead on race fee's.
Simple math would show that's in no way possible unless you were to have at the current rates( $15.00), 50 racers a race night at least 2 nights a week.
The other option is to have the current average of racers (around 20 to 25) and charge $40.00 per racer. Since racers will not pay those rates to race we need to sell around $ 30,000. per month at the 30% margin along with the consistent race night in order to break even.
As I have told the racers in our area. Breaking even is all I ask. If so the place stays. If not, it will go right along with the other tracks in this area.
When I say break even, I mean I take nothing for the 7 days a week I work and the 49 hours a week min. that I work. This in addition to the other full time job I have and the fact that my family life suffers. Enough of the sob story, but do you see were myself and many other track owners would have a problem with on-line, no overhead, no track for the racers to race on, would have a problem with it.
A sale from time to time is great and gives guy's a chance to make a great score, however as a consistent pricing is just wrong. It will pretty hard to sell product when there is no place to use the product. We all need to work together and grow the hobby not kill it.
Thanks for your ear
Your 1st comment, "the members support the track." Question, is this a permanent facility or a temp.?
If you could buy in bulk, your theory is correct, however when you are trying to make rent and overhead, having the extra money to buy in bulk is non existent. I too own a business besides the track/hobby shop. Yes, repeat customer do get a better price from me, in my 1st business because of margins. This however can not be done on the margins that a track/ hobby shop makes. In a hobby shop, the margin is at best about 30%.
As a contractor such as yourself and myself, we can off set the discounts in the labor we charge for the work we do.
Others have said if you run a track right you should be able to pay the rent and overhead on race fee's.
Simple math would show that's in no way possible unless you were to have at the current rates( $15.00), 50 racers a race night at least 2 nights a week.
The other option is to have the current average of racers (around 20 to 25) and charge $40.00 per racer. Since racers will not pay those rates to race we need to sell around $ 30,000. per month at the 30% margin along with the consistent race night in order to break even.
As I have told the racers in our area. Breaking even is all I ask. If so the place stays. If not, it will go right along with the other tracks in this area.
When I say break even, I mean I take nothing for the 7 days a week I work and the 49 hours a week min. that I work. This in addition to the other full time job I have and the fact that my family life suffers. Enough of the sob story, but do you see were myself and many other track owners would have a problem with on-line, no overhead, no track for the racers to race on, would have a problem with it.
A sale from time to time is great and gives guy's a chance to make a great score, however as a consistent pricing is just wrong. It will pretty hard to sell product when there is no place to use the product. We all need to work together and grow the hobby not kill it.
Thanks for your ear
11-16-2007, 02:15 PM
#326
Here is a thought...Maybe Companies A,B,and C feel they can make $1.00 a set and sell MORE VS. Companies D,E and F making $5.00 a set and selling LESS!
Maybe Companies A,B,and C have lower overhead and therefore can price cheaper!
To use the car ideas, thats why you can go to different dealerships and get the same car for less..... One may feel if he clears $500 a car he is happy..then next may feel he needs $1500 a car!
Maybe Companies A,B,and C have lower overhead and therefore can price cheaper!
To use the car ideas, thats why you can go to different dealerships and get the same car for less..... One may feel if he clears $500 a car he is happy..then next may feel he needs $1500 a car!
11-16-2007, 02:30 PM
#327
Tech Fanatic
That doesn't make sense, since the discussion is companies receiving better prices on the tires opposed to other companies. NOT onhow much they can make, or sell for cheaper prices.
Last edited by $rusty$; 11-16-2007 at 03:23 PM.
11-16-2007, 03:11 PM
#328
You would think that race track based hobby shops would get better pricing from manufacturers, since these places are where there products are actually used, and without them they wouldnt even exist.
Brand x could sell tires at $2.00 per pair to online shops but would sell zero if there were no tracks left.
Brand x could sell tires at $2.00 per pair to online shops but would sell zero if there were no tracks left.
Last edited by Jack Smash; 11-16-2007 at 05:37 PM. Reason: Removed brand name
11-16-2007, 03:22 PM
#329
I actually make it a point to buy as much as I possibly can from my track. Believe it or not they are cheaper on almost every item than the other local hobby shops without a track to race on. True, I can shop online and get these a couple of bucks cheaper but they dont provide me a place to race at and have fun every time I get a chance to race.
It is an expensive sport/hobby but I wish more people would support their track as much as they possibly could.
As far as the tires go, I love the new Jacos. They have been pretty solid, havent chunked nearly as bad as past jacos. Look awesome and I think I have been driving better with them on than any other tire.
It is an expensive sport/hobby but I wish more people would support their track as much as they possibly could.
As far as the tires go, I love the new Jacos. They have been pretty solid, havent chunked nearly as bad as past jacos. Look awesome and I think I have been driving better with them on than any other tire.
11-16-2007, 05:23 PM
#330
Tech Fanatic
I am away at a trade show this week so I have not been able to keep up with this thread. However, I am still at a loss why JACO is getting blamed for something we don't have any control over. The mail order company that initiated this low pricing, began the promotion with stock purchased from a distributor. We do sell direct to them (because of their large volume purchasing power), but only sporadically since they find it just as convenient to buy from distributors. We did call them and request that they modify their price. So if they don't? Even if we didn't sell to them direct, they still would offer this deal since it was begun with stock originating from the same distributor you buy from. Perhaps you should call them and start a campaign against their company. We have always done whatever we can to protect our dealer and distribution network. I find it ironic that despite these efforts, we are still condemned. We just happened to be the company they chose to promote. What if it was our competitors that were selling for $9.99? Would there still be the outcry?