Impact of economy on track riding/racing

darylbowden · October 25, 2008, 01:59:57 PM

Has anyone else noticed how many track day orgs are putting their days on sale? I get at least an email a day form some org telling me about the reduced rates for X day.

I'm wondering if the thriving track day business is about to contract quite a bit and I wonder what that means for rates in the future?

desmoquattro · October 25, 2008, 02:57:12 PM

Dunno. I haven't seen rates lately, but I know that I'm certainly cutting back. $500 per day (when you factor in tires, travel, etc) is a bit steep...for a coke habit OR a bike habit.

ducpainter · October 25, 2008, 05:12:32 PM

The only one out here that's had to do that is Lean Angle, to the best of my knowledge.

I have noticed NESBA is pushing harder...not sure about their rates though.

desmoworks · October 25, 2008, 08:15:30 PM

At the last couple WERA rounds (nashville and GNF and Road Atlanta) there were far less people than usual. It seems the economy is hitting motorcyclists who were spending a lot of coins on racing - I guess not all of them are able to continue at the same pace they were in "good" times.

I don't ride with the track day orgs, but I'm on a couple of mailing lists from when I did and I've been seeing discounted days.

turbowagon · October 25, 2008, 10:04:40 PM

it does and actually Freddie Spencer's riding school just went under.
http://www.roadracingworld.com/news/article/?article=34774
The cheapest I have done this year was $125. But cheaper doesn't mean better, it's less organized and the quality of instructor also got affected.

derby · October 26, 2008, 07:13:02 AM

Quote from: turbowagon on October 25, 2008, 10:04:40 PM
it does and actually Freddie Spencer's riding school just went under.
http://www.roadracingworld.com/news/article/?article=34774
The cheapest I have done this year was $125. But cheaper doesn't mean better, it's less organized and the quality of instructor also got affected.

you need to read a little deeper into the spencer deal. it doesn't sound like the economy was his problem.

Cider · October 26, 2008, 08:05:20 AM

Quote from: derby on October 26, 2008, 07:13:02 AM
you need to read a little deeper into the spencer deal. it doesn't sound like the economy was his problem.

I think it was a factor, despite what the quoted instructor says. According to one of the RRW articles, they canceled a class in July due to lack of interest, and the August class I went to had low attendance. One of the instructors even mentioned that enrollments dropped about the same time gas went up.

derby · October 26, 2008, 08:16:01 AM

Quote from: Cider on October 26, 2008, 08:05:20 AM
I think it was a factor, despite what the quoted instructor says. According to one of the RRW articles, they canceled a class in July due to lack of interest, and the August class I went to had low attendance. One of the instructors even mentioned that enrollments dropped about the same time gas went up.

so the price of gas has dropped steadily in the last 4 months to year-ago levels and NOW the most expensive rider school on the planet folds?

i'm curious, have you heard any of the rumors coming from "people in the know"?

Cider · October 26, 2008, 09:38:34 AM

Quote from: derby on October 26, 2008, 08:16:01 AM
so the price of gas has dropped steadily in the last 4 months to year-ago levels and NOW the most expensive rider school on the planet folds?

i'm curious, have you heard any of the rumors coming from "people in the know"?

Yeah, gas prices have come back down, but the economy tanked at the same time. I'm just speculating based on my own observations, but last year they had waiting lists and this year they are cancelling dates for lack of interest.

Ivan · October 26, 2008, 09:39:29 AM

FWIW, yesterday at Willow Springs someone asked Keith Code if they have seen any drop-off at CSS given the economy. He said that their waiting lists have not been as long as in the past.

derby · October 26, 2008, 09:45:30 AM

Quote from: Cider on October 26, 2008, 09:38:34 AM
Yeah, gas prices have come back down, but the economy tanked at the same time. I'm just speculating based on my own observations, but last year they had waiting lists and this year they are cancelling dates for lack of interest.

my point is that a properly managed company should be able to weather this financial storm.

the spencer school, on the other hand, has other issues...

turbowagon · October 27, 2008, 11:39:53 AM

Maybe the management is part of the issue but with the fear of economic uncertainty, people are holding their cash from expensive hobby and it definitely affects the type of business. You can also see many people are unloading nice track prepped bikes also.

Speeddog · October 27, 2008, 12:02:42 PM

Quote from: derby on October 26, 2008, 08:16:01 AM
so the price of gas has dropped steadily in the last 4 months to year-ago levels and NOW the most expensive rider school on the planet folds?

i'm curious, have you heard any of the rumors coming from "people in the know"?

Well, this article says instructors haven't been paid for *months*:
http://roadracingworld.com/news/article/?article=34774

Clearly, the problems were well underway prior to that.

The companies with the thinnest margins or the worst management are going to hit the skids first.

The school with the highest price isn't necessarily the one with the highest profit margin, as we don't know what the expenses are.

tigre · November 04, 2008, 03:43:54 PM

Quote from: Speeddog on October 27, 2008, 12:02:42 PM
The school with the highest price isn't necessarily the one with the highest profit margin, as we don't know what the expenses are.

I'd imagine the expenses are low if they don't pay their bills.

Speeddog · November 04, 2008, 04:52:33 PM

Quote from: tigre on November 04, 2008, 03:43:54 PM
I'd imagine the expenses are low if they don't pay their bills.

Well, that's OK for a while, but it's not really a sustainable business model.

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Impact of economy on track riding/racing