Economics 101 & NHRA

Pat Joffrion · 05-07-2009, 03:45 PM

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

Jim Cimarolli · 05-07-2009, 03:52 PM

Good Job Pat!

Joe Pinkston · 05-07-2009, 04:31 PM

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.

Jim Wahl · 05-07-2009, 06:41 PM

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

GarysZ24 · 05-07-2009, 06:46 PM

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!!!

Detroit Bob · 05-08-2009, 06:09 AM

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.

Pat Joffrion · 05-08-2009, 02:05 PM

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!"

05-07-2009, 03:52 PM	#2
Jim Cimarolli Senior Member Join Date: Mar 2002 Location: Sulphur Springs Texas Posts: 743 Likes: 146 Liked 166 Times in 46 Posts	Re: Economics 101 & NHRA Good Job Pat!

05-07-2009, 04:31 PM	#3
Joe Pinkston Member Join Date: Jun 2006 Location: Williston, Fl. Posts: 352 Likes: 2 Liked 1 Time in 1 Post	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. __________________ Joe Pinkston 2155 S/ST

05-07-2009, 06:41 PM	#4
Jim Wahl Veteran Member Join Date: Jan 2002 Location: Central Florida Posts: 5,844 Likes: 666 Liked 683 Times in 129 Posts	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 __________________ Jim Wahl....NHRA #2239 S/SS - IHRA # 8 Stock, D2 Stock Champion (forever I guess) 2019 Baby Gators Stock Champion 2009 NHRA D2 National Open Stock Champion 1982 NHRA D2 West Palm Beach LDRS SS Runner Up Past President, Southern Stock / Super Stock Association.

05-07-2009, 06:46 PM	#5
GarysZ24 VIP Member Join Date: Dec 2007 Location: Tempe, Az. Posts: 1,266 Likes: 905 Liked 235 Times in 92 Posts	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!!! __________________ Gary Hampton '86 Z24,173 V6 CF/S #5824 (#78 in 2021)

05-08-2009, 06:09 AM	#6
Detroit Bob Junior Member Join Date: Oct 2007 Location: Grosse Pointe Woods Mi Posts: 89 Likes: 0 Liked 8 Times in 3 Posts	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. __________________ Bob Kowal STK 345

05-07-2009, 03:45 PM	#1
Pat Joffrion Member Join Date: Dec 2003 Location: Bayou Country, Louisiana Posts: 163 Likes: 0 Liked 6 Times in 2 Posts	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

05-08-2009, 02:05 PM	#7
Pat Joffrion Member Join Date: Dec 2003 Location: Bayou Country, Louisiana Posts: 163 Likes: 0 Liked 6 Times in 2 Posts	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!"