Track Tac

Track Profitablility...

You better have great people skills. I close my track this year. At 62 years old I was to old school to deal with them. Dealing with today's parents and the younger generation will be one of you biggest problems. If done right even with my low kart counts(30-35 entry's I was still able to pay the bills but any improvements came out of my pocket. I loved running a track and love karting but people quickly took the fun out of it and is the only reason I close my track!!!
 
JMO
I run a series in Ohio , and I make no money at all doing it , because my business sponsors the top 5 payout and I pay back to all that start the feature from the entry fee's . I ran a traveling series of 5 to 8 races per year , running 3 adult classes . 350# , 400# and a RWYB , and start only 14 karts in the features (16 if provisions were used ) I also had at times a consi race for non qualifiers , that paid to the last place , so as to add to a comment above , not all of us are out to line our pockets .
Now as to the original question . Karting events are mostly a family affair , and do not draw much outside spectators .
Gate fee - $10 to $15 per head , we will use $10 to make it easy and here is why gate fee's are useful
200 paid thru the gate = $2,000
50 kids under 6 free = 250 thru the gate
Insurance - $2.95 per head ( Example ) =$737.50 ( Still have to pay for those 50 freebies ) - = $1,262.50
Entry fee's
Rookie - 0 - Trophy for top 3 - 5 entries ( $15 cost of trophy's , example ) This is kartings future , so I would give them all something , in the hole $15
Jr1 red plate - $5 - 6 entries = $30 - Trophy only to top 3 ( Same as above , example ) Back to even money .
Jr2 green plate - $10 - 5- entries = $50 - Trophy to top 5 ( $35 COT , bit bigger trophy's ) =$15
Jr3 purple plate - $10 - 5 - entries = $50 - Same as above =$15
Jr3 blue plate - $20 - 10 entries = $200 - 80% payout $160 = $40
Lights - $20 - 10 entries = $200 = 80% payout $160 = $40
Mediums - same as above = $40
Heavy - same as above =$40
Super Heavy - same as above =$40
Open - same as above = $40
Total of 81 racers paying entry fee's , this is just an example , more or less racers is possible
$1,262.50 +$390 = $1,652.50 Looking like a good profit so far

These are just examples
Staff - 8 - $50 per =$400 , includes flagman , scorer , 2 corner workers , 1 to put karts on track , 1 scale person , 2 in concessions , more if you use an announcer and or 2 scorers or another on track worker .
On site Medical ( EMT , Squad , ect ) $250 , if your lucky , but I stress this as a must.

$1,652.50 - $400 - $250 =$1052.50 Profit , Looking good !

But wait , I still have expenses , electric , track prep , property tax , restock concessions , fix broken items , ect. ect .

Even with a large number of spectators , 161 to be exact , that are non racers . I will be lucky to break even . I see this as a good example as to why gate fee's are needed .
 
Ted:

I have owned and operated a dirt track and I have promoted street races. You have seen many numbers crunched in the responses so far. Regarding the numbers, you have to make your projections based on what you feel are the most realistic figures. Yes, food will make you money, but it will only be pocket change if you don't draw large numbers of people--large numbers and it is a real profit center. Property and liability insurance were not that bad for me and pit passes are an absolute money maker. My general comment is every situation is unique. I have seen tracks near cities fail and I have seen tracks out in the sticks that were gold mines. My observation is that tracks are often trendy--the go great guns for a couple of years and then the cool off. People move on and so expect racer turn over.

Our absolute best class for loyalty and turnout was a Senior Sportsman Briggs class (flathead days) in which we has a claimer on the engine and clutch and was open tire. Beginners are very loyal, but you have to protect their interests with the rules. If I was starting a track today and wanted to create demand, I would consider LO206 engine, spec tires, drum clutch, tire width rules and I might even consider a tire/wheel claim. Have a few extra LO206 engines at the track and if someone gets claimed the can buy one right there. The beauty of the LO206 is a new engine should get faster over time, up to a point where it needs some attention, and a used engine brings about as much as a new one. Also the last multiple seasons. Lastly, I would probably bring in some motor builder and have him show my beginners how the can set up their LO206.
Ted, some tracks for a variety of reasons can make money, but most dont. That is probably true of a lot of businesses. You have to be realistic in any assumptions you make and decide if the money/effort are what you want. If for some reason you can draw better than other places, I am confident you can make some money, but if your facility/event is not a "drawing card" you wont make much.

In closing, was the track you mentioned was for sale ever a big success? If not , what about you or your operation would make it one today? Do you have a kart shop with a big following that will be loyal to you? Will offer something other tracks dont offer--race on different day of the week, different quality of facility, better payout, easier access, better restrooms (you have to keep the women who come happy--seriously), get people home quicker, more user friendly, lower costs, more experienced staff, etc., etc. These are all factors in why people go one place or another. Will you have enough of an advantage in one or more of these areas?

Sorry to ramble and I wish you good luck in your decision. Oh yes, my time running a track was overall a very enjoyable experience!
CMac
 
Thanks for all the input... @JDG -- yes, that's the one, and I've also considered starting from scratch due to the location and dormancy of Bear Creek. The best think BC has going for it is the proximity to 77 as a major corridor, but it's too far a drive from CLT, and wrong direction from G'boro or Winston. Still, it had a halfway decent attendance in the past... There's also a stream running next to property, so water supply no issue. I presume that the infrastructure is now in need of serious attention, and it was rough when I was there 6-7 years ago...

I've considered many options, a serious option being a clearspan steel structure with 1/15 mi. or so, hosting dirt QM's and karts and winged outlaws. Adjoining building for pits. Any option looks to cost somewhere around $100-150,000. And I'm figuring that 80 karts is a reasonable guess. Less first couple of years...

I'd run LO206 Jr. / Sr., Stock Animal (360, no other weights, consis expected) flat and champ, Limited, KT-100, and RWYB (270cc 2 / 460cc 4 limit, open weight) All classes open tire -- pick your favorite and trash talk the rest. Track prepped wet heavy, treads suggested. Samples tested regularly.

Probably just a pipe dream...but we all gotta' dream.
 
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