Strange Engineering/NHRA dispute

[Lee Valentine]

If John Force or Don Shoemacher signs a pepsi sponsorship all will be able to drink what ever they want.

[Rat Raceway]

Originally Posted by B Aceves

Why don't manufactures just have you fill out a form when you purchase a product that you compete in Drag Racing give them the car # and screw the decal, do it private ? If NHRA won't let us run the decals because of that I'm more than happy to take all that crap off my car !
I don't think running a decal really makes a huge impact on the product we use when there are O Frign people in the stands when we race !!!
But the fact is I spend my money on the product …...

As a business owner I would opt out. The whole point of contingency stickers (in my view) is the manufacture gets exposure from the cars that don't win as well as the winners!

More stickers the better chance another racers would be compelled to use that product.

Just thinking out loud...

[FS Fan]

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.

[tim worner]

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.

[GUMP]

Originally Posted by B Aceves

Why don't manufactures just have you fill out a form when you purchase a product that you compete in Drag Racing give them the car # and screw the decal, do it private ? If NHRA won't let us run the decals because of that I'm more than happy to take all that crap off my car !
I don't think running a decal really makes a huge impact on the product we use when there are O Frign people in the stands when we race !!!
But the fact is I spend my money on the product …...

Clueless!

The decal is everything. I am sure that your parts purchase makes the manufacturer happy. But, do you really think that your purchase warrants a contingency?

Tim has it right. The car show sells parts. Thats the bottom line. If we represent the parts in a positive manner the manufacturer has the potential to sell to the masses. Every time a fan walks into your pit space and asks about your car your positive feedback sells parts.

[Jim Craig]

Originally Posted by GUMP

Clueless!

The decal is everything. I am sure that your parts purchase makes the manufacturer happy. But, do you really think that your purchase warrants a contingency?

Tim has it right. The car show sells parts. Thats the bottom line. If we represent the parts in a positive manner the manufacturer has the potential to sell to the masses. Every time a fan walks into your pit space and asks about your car your positive feedback sells parts.

From my (a manufacturer) standpoint....the decal is not "everything". While it is located in that sea of decals you have on your car and the customer sort of sees it, that's great.....but what's "everything" is that you the racer, or builder offer that positive feedback to the inquiring spectator on what components make you successful -- hopefully the ones used on your vehicle and you do have that decal displayed. Word of mouth is what sells components, you being successful results in other racers looking to you for guidance / advice, I doubt that other racers even look at your decals.......

[Chuck Beach]

Decals can enhance a car or ruin the looks of a great paint job. Racers, chassis builders and engine builders know which products work, are reliable, last and help us go fast.

[GUMP]

Originally Posted by Jim Craig

From my (a manufacturer) standpoint....the decal is not "everything". While it is located in that sea of decals you have on your car and the customer sort of sees it, that's great.....but what's "everything" is that you the racer, or builder offer that positive feedback to the inquiring spectator on what components make you successful -- hopefully the ones used on your vehicle and you do have that decal displayed. Word of mouth is what sells components, you being successful results in other racers looking to you for guidance / advice, I doubt that other racers even look at your decals.......

Maybe the word "everything" was too strong. But basically you just repeated the rest of my post.

I have had manufacturers that don't post with the NHRA but know that I run their product ask me to display their decals. So, I know that the decal is VERY important to some. I also know that a lot of companies love to see their logo on TV and in print. I am also sure that they don't give me logo T-shirts just because they feel sorry for me!

Do you guys pay if the decal isn't present?

[njk53]

Don't kid yourself, decals, banners, T shirts, etc. play a significant part of the advertising dollar spent for a manufacturers product. It is all about name/logo and product recognition. When a customer is searching for a product, the name of a manufacturer that the customer recognizes from advertising is more than likely considered.
Do you think Budweiser would give the NFL, NHL and MLB long dollar and not display their banners and electronic displays? I think not.

[buzzinhalfdozen]

Originally Posted by FS Fan

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.

I had long heard that was the way things were done, I always just shook my head and thought WHY? Things being as they are I would think NHRA would be extremely receptive to any and all sponsors proposals...especially if they get to keep any funds not paid out. Wonder if the mob has heard of this program? It is a shame mainly since it appears that they (NHRA) already has money from the sponsor, the win or runner up should leave that race with all monies contingency included instead of having to wait for it.