ECONOMY WOES REACHING DRAG RACING?
Tue, 2008-05-20 12:29
The cost of doing business in a complex United States economy is starting to
show
signs of reaching the drag racing economy. Though the NHRA’s attendance
seems unaffected, those who participate in the traveling “circus” are
starting to feel the sting.
Donnie Faulkner, operator of the Rolling O store at NHRA events, admitted business has been tough the past few events.
“I believe we are starting to see the effects of this now, we didn’t see a problem in the early part of the season, but I think it’s going to cost us about 20 – 25% on the bottom line,” said Faulkner. “Until the gas prices get back down under $4.00, we are all in trouble.” The cost of doing business in a complex United States economy is starting to
show
signs of reaching the drag racing economy. Though the NHRA’s attendance
seems unaffected, those who participate in the traveling “circus” are
starting to feel the sting.
Donnie Faulkner, operator of the Rolling O store at NHRA events, admitted business has been tough the past few events.
“I believe we are starting to see the effects of this now, we didn’t see a problem in the early part of the season, but I think it’s going to cost us about 20 – 25% on the bottom line,” said Faulkner. “Until the gas prices get back down under $4.00, we are all in trouble.”
On an average, diesel fuel is almost $1.50 more per gallon than last year. This increase affects every professional team in the pits, not to mention the multitude of sportsman racers. This increase effects the many vendors as well.
“We usually burn about 200 gallons per rig,” said Faulkner, whose Rolling O Store brings a pair of trucks to the events. “You’re looking at about $1,000 per fill-up for us.”
Faulkner estimates his rig gets about 6 miles per gallon and that is with a tail-wind. A race transporter can generate as low as four miles per gallon.
He admitted the tough part of the fuel increase is that the average consumer pays for it all through increased prices.
“I wish I could hang a sign adding a fuel surcharge like some of these
companies do, but I can’t,” Faulkner said. “Eventually you’ll see
companies, like Oakley, have to raise their prices just to maintain.”
The defending NHRA Funny Car champion Tony Pedregon isn’t a low budget team but he’s not among the highest financed either. He’s experiencing the effects of increased operating costs.
“We always look for ways to offset those and the increases on the metals and other expenses have been a big hit, but the diesel fuel has been an even larger hit,” said Pedregon. “The challenge is to generate new sponsorship and develop programs and we look to the NHRA and there is an imbalance in the purses. I feel that way and I wish the NHRA would do more.
“I think (the purses) should grow right along with the NHRA. I think the nitro cars put on the show and we put our lives on the line and I look at the economy and is what it is, but I think the purses should be better balanced.”
Pedregon said he would love to see the racers get some measure of relief from the NHRA.
“Any relief that we can get helps us,” Pedregon admitted. “You look at the big teams like Force, Schumacher and Bernstein and it has become an issue. It is for us. The economics have gotten tough and I don’t think there’s anyone out here who has too much money. I look at all the areas we can improve on and it comes back to the purses and I don’t think we make anywhere near the effort to equal the work we put in. I think it's equally unfair to everybody.
“There was an increase not long ago and there should have been one before that and there could have been one in between that. That part isn’t growing as this sport grows. This sport has had a lot of growth in the last ten to fifteen years.”
The racers seek a modern purse structure but for the vendors like Faulkner, an efficient event schedule would suit him and others fine.
“Fix the schedule and make it friendlier to everyone,” Faulkner contends. “If they don’t, they are going to push a bunch of people out of business. Let’s make the schedule user friendlier, not just for the sanctioning body. They need to make it where our events follow a reasonable direction across the country. The need to go from one side of the country and back, not zigzagging all over. They [NHRA] have the power to change it, not us.”
Donnie
Faulkner of the Rolling O Store admits drag racing is starting to feel
the crunch of the high gas prices and sluggish economy. (Roger Richards Photos)
Donnie Faulkner, operator of the Rolling O store at NHRA events, admitted business has been tough the past few events.
“I believe we are starting to see the effects of this now, we didn’t see a problem in the early part of the season, but I think it’s going to cost us about 20 – 25% on the bottom line,” said Faulkner. “Until the gas prices get back down under $4.00, we are all in trouble.” The cost of doing business in a complex United States economy is starting to
Donnie
Faulkner of the Rolling O Store admits drag racing is starting to feel
the crunch of the high gas prices and sluggish economy. (Roger Richards Photos)
Donnie Faulkner, operator of the Rolling O store at NHRA events, admitted business has been tough the past few events.
“I believe we are starting to see the effects of this now, we didn’t see a problem in the early part of the season, but I think it’s going to cost us about 20 – 25% on the bottom line,” said Faulkner. “Until the gas prices get back down under $4.00, we are all in trouble.”
On an average, diesel fuel is almost $1.50 more per gallon than last year. This increase affects every professional team in the pits, not to mention the multitude of sportsman racers. This increase effects the many vendors as well.
“We usually burn about 200 gallons per rig,” said Faulkner, whose Rolling O Store brings a pair of trucks to the events. “You’re looking at about $1,000 per fill-up for us.”
Faulkner estimates his rig gets about 6 miles per gallon and that is with a tail-wind. A race transporter can generate as low as four miles per gallon.
He admitted the tough part of the fuel increase is that the average consumer pays for it all through increased prices.
Tony Pedregon wishes for a day when the purse structures will be balanced.
The defending NHRA Funny Car champion Tony Pedregon isn’t a low budget team but he’s not among the highest financed either. He’s experiencing the effects of increased operating costs.
“We always look for ways to offset those and the increases on the metals and other expenses have been a big hit, but the diesel fuel has been an even larger hit,” said Pedregon. “The challenge is to generate new sponsorship and develop programs and we look to the NHRA and there is an imbalance in the purses. I feel that way and I wish the NHRA would do more.
“I think (the purses) should grow right along with the NHRA. I think the nitro cars put on the show and we put our lives on the line and I look at the economy and is what it is, but I think the purses should be better balanced.”
Pedregon said he would love to see the racers get some measure of relief from the NHRA.
“Any relief that we can get helps us,” Pedregon admitted. “You look at the big teams like Force, Schumacher and Bernstein and it has become an issue. It is for us. The economics have gotten tough and I don’t think there’s anyone out here who has too much money. I look at all the areas we can improve on and it comes back to the purses and I don’t think we make anywhere near the effort to equal the work we put in. I think it's equally unfair to everybody.
“There was an increase not long ago and there should have been one before that and there could have been one in between that. That part isn’t growing as this sport grows. This sport has had a lot of growth in the last ten to fifteen years.”
The racers seek a modern purse structure but for the vendors like Faulkner, an efficient event schedule would suit him and others fine.
“Fix the schedule and make it friendlier to everyone,” Faulkner contends. “If they don’t, they are going to push a bunch of people out of business. Let’s make the schedule user friendlier, not just for the sanctioning body. They need to make it where our events follow a reasonable direction across the country. The need to go from one side of the country and back, not zigzagging all over. They [NHRA] have the power to change it, not us.”
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