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

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