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#1 |
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Join Date: Apr 2014
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For basic contingency posting NHRA charges roughly $7k. For added programs or posting more products there is an additional fee.
There was an added minimum payout that had to be met. Not sure if that still exists but if I recall correctly it was $17k. So if you posted contingency for $7k, and only paid out another $7k, you owed NHRA the difference of $10k. From a financial standpoint I could see them wanting your racers to NOT win, realistically I think there wasn't any real motivation one way or the other. I like a percentage plan. Every manufacturer puts up a specified amount up front, when a claim gets paid NHRA pays the racer, takes 15% for administration, and gives the company back whatever is left at the end of season. You could pay racers right at the track. And the only way they make money (other than interest from sitting on the upfront cash) is to encourage people to run your products and win. I would even be ok if any minimum wasn't met the leftover money goes toward National Dragster ads for the product. Why not deliver somethign of value to help marketing? An ad costs them very little but has a high perceieved value. of course I also think there should be a parts submission fee for reviewing a product and if approved that money goes toward ads on NHRA.com or National Dragster. To me things like head studs should have been legal in Stock long ago, why not put together a plan for someone like ARP to launch the product in the Stock ranks that involves a submission, review and ad plan? If you took the copntingnency money and pooled it, that could be someones full time job and sponsors could get more out of it. As could racers. |
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#2 |
Senior Member
Join Date: Jan 2002
Location: duncannon
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In regards to stickers on cars. don't forget we our pit friendly to the fans that walk around and look at the cars and ask questions. We are always asked what products we use and seeing those decals on the cars goes a long way in the decision of a racer or fan as to what products he buys.
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Tim Worner SS 1747 |
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#3 | |
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Join Date: Feb 2008
Location: Georgetown, Indiana (close to Louisville, KY)
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#4 |
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Join Date: Dec 2010
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We were discussing this the other day and a couple of thoughts
1 How many parts are sold because Strange is on the Contingency list? 2 How many racers recommend Strange to Non Nhra racers because of Strange Contingency? 3 What does it cost for NHRA to handle the contingency program processing 24 nationals and 40 LODRS events? The contingency list is advertising, if it cost $13K for strange to be in the program how else would strange spend this advertising money? 1/2 page ad in my local paper is $600 each time I do not know the policies, but some things to think about. |
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#5 | |
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Join Date: Sep 2006
Location: Bellevue Ohio
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Joe Buchanan SS/BX 3117 |
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#6 |
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Join Date: Jul 2007
Location: East China, MI
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Just like many successful businesses, the NHRA has grown significantly over the years and with that growth comes more employees and related operational expenses. If they cannot meet those expenses through event ticket sales, memberships, and race car fees they have to get creative as a means of meeting their financial obligations. That is the most likely reason their sponsorship program is set up the way it is. Unfortunately, they have chased away some pretty good sponsors.
On another note, I was told that all racers in the pro ranks do not have to pay admission to any of the NHRA events, is this true?
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Nelson Kowal Stock 345 |
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#7 |
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Join Date: Dec 2001
Location: Texarkana Ark/TX
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Nelson,
Your PM box is full.
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Adger Smith (Former SS) |
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#8 |
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Personally I think it's a hold out that should be stopped.
Think about it, nhra was the "authority" that would make sponsors pay out, if you won and somebody didn't pay it would be a battle to get your money as a lowly individual. But by giving the money to nhra it would get to the racer. Now, Jump ahead 30-50 years..today there is internet and how many times have you seen on here "XXXX COMPANY WON'T PAY CONTINGENCY" Everybody kmows instantly and the company better pay or people get wise real quick and stop running the parts/decals. So, what is the purpose of nhra now? To guarantee racers get their money? LOL (that even sounded funny typing it) I say there is no reason for the money to go to nhra. (especially when they charge company's for the processing fee) All company's post their contingencies (heck put it in ND and nhra can charge the companies $50 for a year long "ad" or whatever) You mail the company directly, they mail you a cheque. Or they can have a rep at the track to hand out the cheque etc. For a company to have to pay $7K or more for the "priveledge" of giving racers money seems rediculous to me. |
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#9 |
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Join Date: Jul 2007
Location: East China, MI
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I heard NASCAR is even worse. You better bring a wheelbarrow full of cash to have your products endorsed by them.
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Nelson Kowal Stock 345 |
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#10 | |
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Join Date: May 2002
Location: Shelby, NC
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How the NHRA runs the program is another story. |
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